International Business Machines (NYSE: IBM) reported earnings on Jan. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), International Business Machines met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share grew.

Margins grew across the board.

Revenue details
International Business Machines notched revenue of $29.30 billion. The 22 analysts polled by S&P Capital IQ expected sales of $29.09 billion on the same basis. GAAP reported sales were 0.6% lower than the prior-year quarter's $29.49 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $5.39. The 25 earnings estimates compiled by S&P Capital IQ predicted $5.25 per share. GAAP EPS of $5.13 for Q4 were 11% higher than the prior-year quarter's $4.62 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.8%, 190 basis points better than the prior-year quarter. Operating margin was 26.9%, 190 basis points better than the prior-year quarter. Net margin was 19.9%, 130 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $24.71 billion. On the bottom line, the average EPS estimate is $3.03.

Next year's average estimate for revenue is $106.83 billion. The average EPS estimate is $16.63.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,282 members out of 4,718 rating the stock outperform, and 436 members rating it underperform. Among 1,053 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 994 give International Business Machines a green thumbs-up, and 59 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on International Business Machines is outperform, with an average price target of $219.96.

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