This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
For Immediate Release
Chicago, IL – October 15, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include IBM Corp. (IBM - Analyst Report)), Oracle Corp. (ORCL - Analyst Report), Hewlett-Packard Co. (HPQ - Analyst Report), Microsoft Corp (MSFT - Analyst Report) and EMC Corp (EMC - Analyst Report)).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday’s Analyst Blog:
Earnings Preview: IBM
IBM Corp. (IBM - Analyst Report) is all set to report its third quarter results on October 16, 2012, after the markets close. IBM has posted an average earnings surprise of 3.04% over the trailing four quarters. We don’t expect a major change in the earnings trend pattern for the current quarter.
Prior Quarter Recap
IBM reported a mixed second quarter (reported July 18, 2012), with bottom line up in double-digits for the 20th time in the last 22 quarters. However, revenue failed to meet the consensus mark and also declined on a year-over-year basis for the first time in the last four quarters. Despite the decline, IBM nudged up its annual earnings guidance by a dime.
For further details please see IBM Reports Mixed 2Q, Outlook Up.
Estimate Revision Trend
In the last 30 days, out of the 21 analysts covering the stock, 2 analysts revised their estimates downward. However, the Zacks Consensus Estimate for the third quarter 2012 remained at $3.61 per share, indicating that analyst revisions were mostly fine tuning in nature.
Despite the ongoing macro-economic concerns and unfavorable foreign exchange rates, analysts expect IBM to report a decent quarter on the back of robust signings and higher recurring revenues. Moreover, the strong demand for business analytics and smarter planet is expected to positively impact the quarterly results. For the third quarter, the Zacks Consensus revenue estimate is pegged at $25.43 billion.
We believe that IBM remains well positioned for long-term growth based on its four key growth initiatives: smarter planet, growth markets, business analytics and cloud computing, which are expected to deliver at least $50 billion in revenues by fiscal 2015. We believe that IBM’s strong product pipeline, expansion into emerging markets and continuous acquisitions will help it to achieve this target going forward.
We also believe that a strong patent portfolio and accretive acquisitions will provide IBM a competitive edge over other prominent vendors, including Oracle Corp. (ORCL - Analyst Report), Hewlett-Packard Co. (HPQ - Analyst Report), Microsoft Corp (MSFT - Analyst Report) and EMC Corp (EMC - Analyst Report).
However, modestly slower IT growth, primarily due to volatile macroeconomic conditions; a high level of unemployment; continuing European debt crisis and unfavorable foreign exchange fluctuations are expected to negatively impact the forthcoming quarters.
We have a long-term Neutral recommendation on IBM and are optimistic about its strong fundamentals and robust growth prospects going forward. Currently, IBM has a Zacks #3 Rank, which translates into a short-term Hold rating.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339