Wall Street analysts expect IBM (IBM) to post quarterly earnings of $2.43 per share in its upcoming report, which indicates a year-over-year increase of 5.7%. Revenues are expected to be $16.09 billion, up 7.5% from the year-ago quarter.
The current level reflects an upward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some IBM metrics that are commonly tracked and projected by analysts on Wall Street.
The consensus among analysts is that 'Revenue- Software' will reach $7.27 billion. The estimate indicates a change of +11.4% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Consulting' will reach $5.26 billion. The estimate suggests a change of +2% year over year.
Analysts expect 'Revenue- Infrastructure' to come in at $3.40 billion. The estimate indicates a year-over-year change of +11.9%.
Analysts predict that the 'Revenue- Other' will reach -$6.47 million. The estimate indicates a change of -109.5% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenue- Infrastructure Support' of $1.25 billion. The estimate points to a change of -3.9% from the year-ago quarter.
Analysts' assessment points toward 'Revenue- Transaction Processing' reaching $2.05 billion. The estimate indicates a year-over-year change of +7.8%.
Analysts forecast 'Revenue- Hybrid Infrastructure' to reach $2.08 billion. The estimate indicates a year-over-year change of +15.5%.
According to the collective judgment of analysts, 'Gross Profit- Consulting' should come in at $1.48 billion. The estimate compares to the year-ago value of $1.46 billion.
The consensus estimate for 'Gross Profit- Infrastructure' stands at $1.82 billion. The estimate is in contrast to the year-ago figure of $1.67 billion.
The average prediction of analysts places 'Gross Profit- Software' at $6.07 billion. Compared to the present estimate, the company reported $5.43 billion in the same quarter last year.
The combined assessment of analysts suggests that 'Segment Profit- Software' will likely reach $2.32 billion. The estimate compares to the year-ago value of $1.97 billion.
Based on the collective assessment of analysts, 'Segment Profit- Infrastructure' should arrive at $468.62 million. The estimate compares to the year-ago value of $422.00 million.
View all Key Company Metrics for IBM here>>>
Shares of IBM have experienced a change of +4.1% in the past month compared to the +0.7% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), IBM is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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International Business Machines Corporation (IBM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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