Technology and consulting giant IBM (NYSE: IBM) will be reporting earnings this Wednesday after the bell. Here’s what to look for.
IBM beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $16.33 billion, up 9.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ operating income estimates and a beat of analysts’ EPS estimates.
Is IBM a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting IBM’s revenue to grow 9.5% year on year to $19.21 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $4.29 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. IBM has missed Wall Street’s revenue estimates twice over the last two years.
Looking at IBM’s peers in the it services & other tech segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Accenture delivered year-on-year revenue growth of 6%, beating analysts’ expectations by 1.2%, and Applied Digital reported revenues up 98.2%, topping estimates by 14.8%. Accenture’s stock price was unchanged after the resultswhile Applied Digital was up 8.1%.
Read our full analysis of Accenture’s results here and Applied Digital’s results here.
Investors in the it services & other tech segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. IBM is down 3.1% during the same time and is heading into earnings with an average analyst price target of $305.16 (compared to the current share price of $296.46).
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