International Business Machines (NYSE:IBM) Releases Quarterly Earnings Results, Misses Estimates By $0.04 EPS

International Business Machines (NYSE:IBM) released its quarterly earnings results on Wednesday. The technology company reported $2.93 earnings per share for the quarter, missing analysts’ consensus estimates of $2.97 by ($0.04), FiscalAI reports. The business had revenue of $17.16 billion for the quarter, compared to analysts’ expectations of $17.86 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.

International Business Machines Trading Down 2.1%

NYSE IBM traded down $4.47 during trading on Wednesday, hitting $206.03. The stock had a trading volume of 13,600,296 shares, compared to its average volume of 8,126,357. The company has a market capitalization of $193.64 billion, a PE ratio of 18.22, a PEG ratio of 2.30 and a beta of 0.68. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. The firm has a 50 day moving average price of $263.44 and a 200 day moving average price of $262.05. International Business Machines has a twelve month low of $204.44 and a twelve month high of $332.46.

International Business Machines News Summary

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: Some commentary suggests IBM may be undervalued after the pullback, with one valuation-focused article arguing the stock could be a bargain at current levels. IBM Stock Looks Like A Bargain At Current Levels
• Positive Sentiment: One earnings-preview piece highlighted continued AI momentum as a potential factor that could help restore investor confidence if management delivers reassuring guidance. IBM Earnings in Focus: Can AI momentum revive investor confidence?
• Neutral Sentiment: IBM is due to report full Q2 results, and several previews say the market is focused on management’s outlook, sales pipeline commentary, dividend support, and whether the company can explain the recent profit warning. IBM to Report Full Q2 Results After Its Historic Stock Crash – Here’s What Investors Will Watch
• Negative Sentiment: Multiple law firms have launched securities-fraud investigations into IBM following the steep stock drop and the July 14 guidance cut, adding headline risk and reinforcing concerns about the quality of prior disclosures. IBM Investigation Notice: IBM Product Slowdown and 25% Stock Drop Trigger Securities Fraud Investigation

Wall Street Analyst Weigh In

Several brokerages recently issued reports on IBM. Robert W. Baird assumed coverage on shares of International Business Machines in a report on Tuesday. They issued a “neutral” rating and a $230.00 price objective on the stock. Wolfe Research cut shares of International Business Machines to a “peer perform” rating in a research report on Tuesday, June 23rd. Jefferies Financial Group decreased their price objective on shares of International Business Machines from $320.00 to $260.00 and set a “buy” rating on the stock in a report on Tuesday. Wall Street Zen cut shares of International Business Machines from a “hold” rating to a “sell” rating in a research report on Saturday. Finally, Sanford C. Bernstein reiterated a “market perform” rating on shares of International Business Machines in a report on Thursday, July 16th. Fifteen investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $278.68.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. First Commonwealth Financial Corp PA grew its holdings in shares of International Business Machines by 2.9% in the fourth quarter. First Commonwealth Financial Corp PA now owns 3,899 shares of the technology company’s stock valued at $1,155,000 after purchasing an additional 109 shares in the last quarter. Blue Sparrow LLC DE purchased a new position in International Business Machines in the 4th quarter valued at approximately $27,841,000. Mercer Global Advisors Inc. ADV boosted its position in International Business Machines by 2.8% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 266,729 shares of the technology company’s stock valued at $79,094,000 after buying an additional 7,167 shares during the period. Summit Global Investments acquired a new position in shares of International Business Machines in the fourth quarter worth $1,246,000. Finally, Raymond James Financial Inc. increased its position in shares of International Business Machines by 6.8% during the fourth quarter. Raymond James Financial Inc. now owns 2,820,494 shares of the technology company’s stock worth $838,207,000 after acquiring an additional 179,071 shares during the period. Hedge funds and other institutional investors own 58.96% of the company’s stock.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM’s principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.