IBM's Earnings: What You Need To Know

6:19 pm ET, 17 Jan 2018

IBM (NYSE: IBM) is set to report its earnings on Thursday, after the closing bell.  

Here are a few things you should know about IBM pre-earnings.

IBM’s growth thus far has been driven by analytics and big data, cloud computing, mobile, and security. In the third quarter, revenues from strategic Imperatives grew 10% year-over-year and now form over 45% of IBM’s top line. Cloud revenues grew 20%, while security surged 49%.  

Cloud revenues are now over $15 billion (based on the trailing 12 months), approximately one-fifth of the Company's top line. 

IBM has registered strong business results in growth markets. What helped IBM gain traction in emerging markets is its software and cloud offerings.  The emerging markets will play a key role for IBM, as growth in the developed markets slows down.

IBM’s portfolio of strategic acquisitions is impressive: over 150 companies were acquired since 2000. Those accretive acquisitions have been integrated into IBM’s mainstream business, and have spurred growth in areas such as cloud computing and big data. 

Based on Finstead research, analysts are calling for a price target somewhat below the current price (the upside is -2.89%; visit Finbot and type “IBM upside”).  

It’s important to note that the market had a pretty notable reaction to IBM’s earnings in the last eight quarters. In the most recent quarter, the stock jumped over 8% above the pre-earnings price.  

Over the last year, IBM returned +0.67%. This return is lower than Information Technology Services Industry (27.53%), Technology Sector (27.81%), and S&P 500 (23.58%) returns.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

International Business Machines Corporation (IBM) Stock Guide

Updated at: 5:10 am ET, 22 Jul 2020

Before we start: if you're looking for IBM stock price, you can quickly find it out by visiting Finny and typing "IBM quote". If you're looking for a quick scoop on IBM stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "IBM". You'll get all this info in one place. Or you can just type "IBM news" to get the latest stock news.

Looking to buy or sell International Business Machines Corporation (IBM)? Interested in getting the full scoop on IBM, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this IBM stock guide, we'll address key questions about IBM, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are IBM earnings?
2. When is IBM earnings date?
3. What is IBM dividend?
4. What is IBM dividend yield?
5. What is IBM stock forecast (i.e., prediction)?
6. IBM buy or sell? What is IBM Finny Score?
7. What are the reasons to buy IBM? Why should I buy IBM stock?
8. What are the reasons to sell IBM? Why should I sell IBM stock?
9. What are IBM key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are IBM earnings?

IBM trailing 12-month earnings per share (EPS) is $10.10.

2. When is IBM earnings date?

IBM earnings date is October 19, 2020.

3. What is IBM dividend?

IBM forward dividend is $6.52.

4. What is IBM dividend yield?

IBM forward dividend yield is 5.63%.

Analyst Predictions

5. What is IBM stock forecast (i.e., prediction)?

Based on IBM analyst price targets, IBM stock forecast is $127.29 (for a year from now). That means the average analyst price target for IBM stock is $127.29. The prediction is based on 25 analyst estimates.

The low price target for IBM is $90.00, while the high price target is $150.00.

IBM analyst rating is Hold.

Analysis

6. IBM buy or sell? What is IBM Finny Score?

#{finnyScore:20}Our quantitative analysis shows 1 reason to buy and 4 reasons to sell IBM, resulting in Finny Score of 20.

7. What are the reasons to buy IBM? Why should I buy IBM stock?

Here are the reasons to buy IBM stock:

  • IBM is seeking to create an extensive developer ecosystem that will build on top of frameworks like Watson. Although early, we think this is a positive step forward for its enterprise application and Big Data and analytics businesses.
  • Enterprise IT complexity and demand for digital transformation skills will continue to drive core and strategic initiative work.
  • IBM's $119 billion-plus services backlog and existing relationships provide great insight into customer requirements, which benefits new product development and research initiatives.
  • IBM forward dividend yield is 5.63%, higher than the industry (0.44%) and sector (0.26%) forward dividend yields. See IBM forward dividend chart.

8. What are the reasons to sell IBM? Why should I sell IBM stock?

Let's look at the reasons to sell IBM stock (i.e., the bear case):

  • IBM’s public cloud IaaS offering, SoftLayer, has a very small share of the market which may limit its appeal to business partners and customers. According to Gartner, more than 90% of all public cloud IaaS compute capacity in use is in Amazon.
  • Owing to the firm’s size, IBM’s product portfolio has been criticized for being too complicated with a lack of integration across product strategies. Clients can be overwhelmed by choice and complexity.
  • IBM’s network security portfolio is incomplete, and the Power Systems server and storage businesses face fierce competition and pricing pressure.
  • IBM quarterly revenue growth was -3.40%, lower than the industry and sector average revenue growth (2.15% and 1.51%, respectively). See IBM revenue growth chart.
  • IBM profitability is declining. The YoY profit margin change was -7.59 percentage points. See IBM profitability chart.
  • IBM PEG ratio (P/E adjusted for growth) is 2.77, which is high compared to its industry peers’ PEG ratios. See IBM PEG chart.
  • IBM short interest (days to cover the shorts) ratio is 3.09. The stock garners more short interest than the average industry, sector or S&P 500 stock. See IBM short interest ratio chart.

Key Stats

9. What are IBM key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for IBM:

Metrics IBM
Price $127.14
Average Price Target / Upside $127.29 / 0.12%
Average Analyst Rating Hold
Forward Dividend Yield 5.17%
Industry Information Technology Services
Sector Technology
Number of Employees 381,100
Market Cap $111.29B
Forward P/E Ratio 10.23
Price/Book Ratio 1.47
Revenue (TTM) $75.5B
YoY Quarterly Revenue Growth -5.40%
Profit Margin 10.43%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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