IBM (IBM) Expected to Announce Earnings of $4.86 Per Share

Analysts expect IBM (NYSE:IBM) to announce $4.86 earnings per share (EPS) for the current fiscal quarter, Zacks Investment Research reports. Five analysts have provided estimates for IBM’s earnings, with the lowest EPS estimate coming in at $4.84 and the highest estimate coming in at $4.88. IBM posted earnings of $5.18 per share during the same quarter last year, which would suggest a negative year over year growth rate of 6.2%. The business is expected to issue its next earnings report on Thursday, January 17th.

On average, analysts expect that IBM will report full year earnings of $13.81 per share for the current fiscal year, with EPS estimates ranging from $13.79 to $13.90. For the next fiscal year, analysts anticipate that the business will post earnings of $14.12 per share, with EPS estimates ranging from $13.96 to $14.75. Zacks Investment Research’s EPS calculations are an average based on a survey of research firms that that provide coverage for IBM.

IBM (NYSE:IBM) last announced its earnings results on Tuesday, October 16th. The technology company reported $3.42 EPS for the quarter, topping the consensus estimate of $3.40 by $0.02. IBM had a net margin of 7.12% and a return on equity of 69.98%. The company had revenue of $18.76 billion during the quarter, compared to analysts’ expectations of $19.04 billion. During the same period last year, the company posted $3.30 earnings per share. The business’s revenue for the quarter was down 2.1% on a year-over-year basis.

IBM has been the subject of several recent analyst reports. Zacks Investment Research cut shares of IBM from a “hold” rating to a “sell” rating in a report on Wednesday, October 3rd. UBS Group set a $180.00 target price on shares of IBM and gave the stock a “buy” rating in a report on Wednesday, October 10th. Deutsche Bank decreased their target price on shares of IBM to $150.00 and set a “hold” rating for the company in a report on Thursday, July 19th. Morgan Stanley decreased their target price on shares of IBM from $198.00 to $185.00 and set a “$149.24” rating for the company in a report on Thursday, July 19th. Finally, Wells Fargo & Co initiated coverage on shares of IBM in a report on Monday, July 30th. They issued a “market perform” rating for the company. Three equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and ten have given a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus target price of $167.39.

Shares of IBM traded down $1.45 during midday trading on Monday, hitting $129.10. The stock had a trading volume of 7,720,962 shares, compared to its average volume of 6,628,948. IBM has a fifty-two week low of $127.96 and a fifty-two week high of $171.13. The stock has a market cap of $119.16 billion, a price-to-earnings ratio of 9.36, a PEG ratio of 1.90 and a beta of 0.87. The company has a debt-to-equity ratio of 1.81, a current ratio of 1.31 and a quick ratio of 1.27.

In other news, insider Diane J. Gherson sold 11,451 shares of the stock in a transaction that occurred on Friday, August 3rd. The shares were sold at an average price of $145.42, for a total value of $1,665,204.42. Following the completion of the sale, the insider now directly owns 19,114 shares of the company’s stock, valued at $2,779,557.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.17% of the stock is owned by corporate insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Swedbank lifted its position in shares of IBM by 214.6% in the third quarter. Swedbank now owns 1,123,724 shares of the technology company’s stock worth $169,918,000 after purchasing an additional 766,478 shares in the last quarter. Coastline Trust Co lifted its position in shares of IBM by 14.7% in the second quarter. Coastline Trust Co now owns 19,353 shares of the technology company’s stock worth $2,704,000 after purchasing an additional 2,475 shares in the last quarter. Schroder Investment Management Group lifted its position in shares of IBM by 24.1% in the second quarter. Schroder Investment Management Group now owns 1,854,109 shares of the technology company’s stock worth $259,649,000 after purchasing an additional 359,868 shares in the last quarter. Adams Asset Advisors LLC lifted its position in shares of IBM by 14.0% in the third quarter. Adams Asset Advisors LLC now owns 48,705 shares of the technology company’s stock worth $7,364,000 after purchasing an additional 5,970 shares in the last quarter. Finally, Berkshire Asset Management LLC PA lifted its position in shares of IBM by 2.4% in the third quarter. Berkshire Asset Management LLC PA now owns 20,690 shares of the technology company’s stock worth $3,129,000 after purchasing an additional 481 shares in the last quarter. 55.42% of the stock is owned by institutional investors and hedge funds.

IBM Company Profile

International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers.

Further Reading: Price to Earnings Ratio (PE)

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Earnings History and Estimates for IBM (NYSE:IBM)

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