Zacks: Brokerages Expect IBM (IBM) Will Post Earnings of $4.90 Per Share

Wall Street brokerages expect that IBM (NYSE:IBM) will announce $4.90 earnings per share for the current fiscal quarter, Zacks Investment Research reports. Five analysts have issued estimates for IBM’s earnings. The highest EPS estimate is $4.98 and the lowest is $4.84. IBM posted earnings per share of $5.18 during the same quarter last year, which would suggest a negative year over year growth rate of 5.4%. The company is expected to announce its next quarterly earnings results on Thursday, January 17th.

On average, analysts expect that IBM will report full-year earnings of $13.80 per share for the current year, with EPS estimates ranging from $13.78 to $13.82. For the next financial year, analysts anticipate that the company will report earnings of $14.15 per share, with EPS estimates ranging from $13.65 to $15.07. Zacks Investment Research’s EPS averages are an average based on a survey of sell-side research firms that follow IBM.

IBM (NYSE:IBM) last issued its quarterly earnings data on Tuesday, October 16th. The technology company reported $3.42 EPS for the quarter, topping the consensus estimate of $3.40 by $0.02. The firm had revenue of $18.76 billion during the quarter, compared to the consensus estimate of $19.04 billion. IBM had a return on equity of 69.84% and a net margin of 7.13%. The company’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same period in the prior year, the business posted $3.30 earnings per share.

A number of analysts recently commented on the company. Bank of America reaffirmed a “buy” rating and set a $200.00 price target on shares of IBM in a research report on Wednesday. BMO Capital Markets decreased their price target on IBM from $172.00 to $164.00 and set a “market perform” rating for the company in a research report on Wednesday. Cantor Fitzgerald decreased their price target on IBM from $152.00 to $140.00 and set a “neutral” rating for the company in a research report on Wednesday. JPMorgan Chase & Co. set a $160.00 price target on IBM and gave the company a “neutral” rating in a research report on Wednesday. Finally, Morgan Stanley decreased their price target on IBM from $185.00 to $168.00 and set an “overweight” rating for the company in a research report on Wednesday. Five research analysts have rated the stock with a sell rating, twelve have given a hold rating and ten have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $165.48.

Shares of IBM opened at $134.05 on Monday. The company has a debt-to-equity ratio of 2.03, a current ratio of 1.32 and a quick ratio of 1.27. The company has a market cap of $138.02 billion, a P/E ratio of 9.71, a price-to-earnings-growth ratio of 2.20 and a beta of 0.87. IBM has a 12 month low of $133.42 and a 12 month high of $171.13.

In other news, insider Diane J. Gherson sold 11,451 shares of the firm’s stock in a transaction on Friday, August 3rd. The stock was sold at an average price of $145.42, for a total value of $1,665,204.42. Following the completion of the transaction, 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 filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.17% of the stock is owned by company insiders.

Several institutional investors have recently bought and sold shares of IBM. Schroder Investment Management Group boosted its stake in IBM by 24.1% during the second quarter. Schroder Investment Management Group now owns 1,854,109 shares of the technology company’s stock valued at $259,649,000 after buying an additional 359,868 shares during the period. Swedbank boosted its stake in IBM by 214.6% during the third quarter. Swedbank now owns 1,123,724 shares of the technology company’s stock valued at $169,918,000 after buying an additional 766,478 shares during the period. Aperio Group LLC boosted its stake in IBM by 9.0% during the third quarter. Aperio Group LLC now owns 454,228 shares of the technology company’s stock valued at $68,684,000 after buying an additional 37,393 shares during the period. Nisa Investment Advisors LLC boosted its stake in IBM by 3.6% during the third quarter. Nisa Investment Advisors LLC now owns 320,951 shares of the technology company’s stock valued at $48,531,000 after buying an additional 11,129 shares during the period. Finally, Tocqueville Asset Management L.P. boosted its stake in IBM by 4.3% during the second quarter. Tocqueville Asset Management L.P. now owns 205,622 shares of the technology company’s stock valued at $28,725,000 after buying an additional 8,571 shares during the period. 55.39% of the stock is owned by hedge funds and other institutional investors.

About IBM

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.

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Earnings History and Estimates for IBM (NYSE:IBM)

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