We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Modest Consulting Revenues Aid IBM This Earnings Season?
Read MoreHide Full Article
International Business Machines Corporation (IBM - Free Report) is scheduled to report third-quarter 2022 results on Oct 19, after the closing bell. In the third quarter, the company is likely to have recorded healthy revenues from the Consulting segment with significant traction from the Technology Consulting business.
Factors at Play
The Consulting segment comprises Business Transformation, Technology Consulting and Application Operations. It provides consulting and application management services that offer value and innovation to clients by leveraging industry, technology and business strategy and process know-how.
During the quarter, IBM reinforced its alliance with the United States Tennis Association (“USTA”) with a five-year renewal deal. The USTA and IBM iX, which is the experience design arm of IBM Consulting, have worked to develop and design the updated website and app, enabling fans across the world to mark their favorite players and curate their digital experience based on their own selections. Relevant and contextual content and insights have been redeveloped through the updated Scores, Schedule, Draws and Players sections.
The company further expanded its partner relationships in AI, network automation and security to help the telecommunications industry evolve as 5G and Edge Computing take center stage. During the quarter, IBM inked an agreement with Bharti Airtel for an undisclosed amount to deploy an edge computing platform in India. This is likely to extend the secured cloud services for business enterprises while improving their performance through reduced latency and higher data security features. These are likely to have driven incremental revenues in the Consulting segment.
Overall Expectations
The Zacks Consensus Estimate for revenues from Consulting is pegged at $4,471 million.
The Zacks Consensus Estimate for total revenues for the company stands at $13,749 million. Our revenue estimate for the quarter is pegged at $14,159 million. It generated restated revenues of $13,251 million in the prior-year quarter. The consensus mark for earnings is currently pegged at $1.78 per share, indicating a decline from the restated tally of $1.84 in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for IBM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -6.39%, with the former pegged at $1.67 and the latter at $1.78. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
International Business Machines Corporation Price and EPS Surprise
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Verizon Communications Inc. (VZ - Free Report) is +0.26% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 21.
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +8.18% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct 27.
Image: Bigstock
Can Modest Consulting Revenues Aid IBM This Earnings Season?
International Business Machines Corporation (IBM - Free Report) is scheduled to report third-quarter 2022 results on Oct 19, after the closing bell. In the third quarter, the company is likely to have recorded healthy revenues from the Consulting segment with significant traction from the Technology Consulting business.
Factors at Play
The Consulting segment comprises Business Transformation, Technology Consulting and Application Operations. It provides consulting and application management services that offer value and innovation to clients by leveraging industry, technology and business strategy and process know-how.
During the quarter, IBM reinforced its alliance with the United States Tennis Association (“USTA”) with a five-year renewal deal. The USTA and IBM iX, which is the experience design arm of IBM Consulting, have worked to develop and design the updated website and app, enabling fans across the world to mark their favorite players and curate their digital experience based on their own selections. Relevant and contextual content and insights have been redeveloped through the updated Scores, Schedule, Draws and Players sections.
The company further expanded its partner relationships in AI, network automation and security to help the telecommunications industry evolve as 5G and Edge Computing take center stage. During the quarter, IBM inked an agreement with Bharti Airtel for an undisclosed amount to deploy an edge computing platform in India. This is likely to extend the secured cloud services for business enterprises while improving their performance through reduced latency and higher data security features. These are likely to have driven incremental revenues in the Consulting segment.
Overall Expectations
The Zacks Consensus Estimate for revenues from Consulting is pegged at $4,471 million.
The Zacks Consensus Estimate for total revenues for the company stands at $13,749 million. Our revenue estimate for the quarter is pegged at $14,159 million. It generated restated revenues of $13,251 million in the prior-year quarter. The consensus mark for earnings is currently pegged at $1.78 per share, indicating a decline from the restated tally of $1.84 in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for IBM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -6.39%, with the former pegged at $1.67 and the latter at $1.78. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
International Business Machines Corporation Price and EPS Surprise
International Business Machines Corporation price-eps-surprise | International Business Machines Corporation Quote
Zacks Rank: IBM currently has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
AT&T Inc. (T - Free Report) is set to release quarterly numbers on Oct 20. It has an Earnings ESP of +2.70% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Verizon Communications Inc. (VZ - Free Report) is +0.26% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 21.
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +8.18% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.