IBM has released higher profit forecasts for 2009 than Wall Street had anticipated.

This is an indication the company's strategy of focusing on high-margin services and products is working. The market reacted to the good news swiftly, and IBM shares soared 4 percent over the news in after-hours trading.

IBM predicts a $9.20 per share profit in 2009, although analysts believe it will end up around $8.75. The company's Q4 profits rose 12 percent, beating analyst estimates.