Wall Street analysts expect IBM (IBM) to post quarterly earnings of $4.33 per share in its upcoming report, which indicates a year-over-year increase of 10.5%. Revenues are expected to be $19.2 billion, up 9.4% from the year-ago quarter.
The current level reflects an upward revision of 0.6% 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.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
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 collective assessment of analysts points to an estimated 'Revenue- Software' of $8.90 billion. The estimate indicates a change of +12.4% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenue- Consulting' will likely reach $5.43 billion. The estimate points to a change of +5% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Other' should arrive at $32.55 million. The estimate indicates a year-over-year change of +12.3%.
It is projected by analysts that the 'Revenue- Infrastructure' will reach $4.67 billion. The estimate suggests a change of +9.8% year over year.
Analysts predict that the 'Revenue- Infrastructure Support' will reach $1.31 billion. The estimate indicates a year-over-year change of +0.7%.
The average prediction of analysts places 'Revenue- Transaction Processing' at $2.55 billion. The estimate suggests a change of +6.4% year over year.
Analysts forecast 'Revenue- Hybrid Infrastructure' to reach $3.36 billion. The estimate points to a change of +12.1% from the year-ago quarter.
Analysts' assessment points toward 'Segment Profit- Software' reaching $3.62 billion. Compared to the present estimate, the company reported $3.10 billion in the same quarter last year.
Analysts expect 'Segment Profit- Infrastructure' to come in at $1.16 billion. The estimate is in contrast to the year-ago figure of $1.06 billion.
The consensus among analysts is that 'Segment Profit- Financing' will reach $97.25 million. The estimate compares to the year-ago value of $94.00 million.
The consensus estimate for 'Segment Profit- Consulting' stands at $685.71 million. Compared to the present estimate, the company reported $606.00 million in the same quarter last year.
View all Key Company Metrics for IBM here>>>
Over the past month, IBM shares have recorded returns of -3.3% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #3 (Hold), IBM will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Business Machines Corporation (IBM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
