Technology and consulting giant IBM NYSE:IBM will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
IBM beat analysts’ revenue expectations last quarter, reporting revenues of $15.92 billion, up 9.5% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates.
Is IBM a buy or sell going into earnings? .
This quarter, the market is expecting IBM’s revenue to grow 3% year on year, slowing from the 7.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. IBM rarely misses Wall Street’s revenue estimates.
Looking at IBM’s peers in the it services & other tech segment, only Accenture has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 5.6%. The stock price was unchanged following the results. Read our full analysis of .
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 5.5% on average over the last month. IBM is down 15.5% during the same time and is heading into earnings with an average analyst price target of $271.25 (compared to the current share price of $213.40).
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Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar.