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IBM (IBM) Reports Q4 Earnings: What Key Metrics Have to Say
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For the quarter ended December 2023, IBM (IBM - Free Report) reported revenue of $17.38 billion, up 4.1% over the same period last year. EPS came in at $3.87, compared to $3.60 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $17.28 billion, representing a surprise of +0.59%. The company delivered an EPS surprise of +2.38%, with the consensus EPS estimate being $3.78.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how IBM performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Global financing: $175 million compared to the $176.31 million average estimate based on five analysts. The reported number represents a change of +1.7% year over year.
Revenue- Consulting: $5.05 billion versus the five-analyst average estimate of $5.09 billion. The reported number represents a year-over-year change of +5.8%.
Revenue- Other: $41 million versus $42.12 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -286.4% change.
Revenue- Infrastructure: $4.60 billion compared to the $4.36 billion average estimate based on five analysts. The reported number represents a change of +2.7% year over year.
Revenue- Software: $7.51 billion versus $7.56 billion estimated by five analysts on average.
Revenue- Infrastructure Support: $1.30 billion compared to the $1.47 billion average estimate based on two analysts. The reported number represents a change of -7.1% year over year.
Revenue- Hybrid Infrastructure: $3.30 billion versus the two-analyst average estimate of $2.89 billion. The reported number represents a year-over-year change of +6.5%.
Revenue- Application Operations: $1.80 billion versus $1.76 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +12.5% change.
Revenue- Technology Consulting: $1 billion compared to the $990.10 million average estimate based on two analysts. The reported number represents a change of +11.1% year over year.
Revenue- Business Transformation: $2.30 billion compared to the $2.32 billion average estimate based on two analysts. The reported number represents a change of +4.6% year over year.
Revenue- Hybrid Platform & Solutions: $5.30 billion compared to the $5.32 billion average estimate based on two analysts. The reported number represents a change of +1.9% year over year.
Revenue- Transaction Processing: $2.20 billion versus $2.05 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
Shares of IBM have returned +6.6% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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IBM (IBM) Reports Q4 Earnings: What Key Metrics Have to Say
For the quarter ended December 2023, IBM (IBM - Free Report) reported revenue of $17.38 billion, up 4.1% over the same period last year. EPS came in at $3.87, compared to $3.60 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $17.28 billion, representing a surprise of +0.59%. The company delivered an EPS surprise of +2.38%, with the consensus EPS estimate being $3.78.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how IBM performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Global financing: $175 million compared to the $176.31 million average estimate based on five analysts. The reported number represents a change of +1.7% year over year.
- Revenue- Consulting: $5.05 billion versus the five-analyst average estimate of $5.09 billion. The reported number represents a year-over-year change of +5.8%.
- Revenue- Other: $41 million versus $42.12 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -286.4% change.
- Revenue- Infrastructure: $4.60 billion compared to the $4.36 billion average estimate based on five analysts. The reported number represents a change of +2.7% year over year.
- Revenue- Software: $7.51 billion versus $7.56 billion estimated by five analysts on average.
- Revenue- Infrastructure Support: $1.30 billion compared to the $1.47 billion average estimate based on two analysts. The reported number represents a change of -7.1% year over year.
- Revenue- Hybrid Infrastructure: $3.30 billion versus the two-analyst average estimate of $2.89 billion. The reported number represents a year-over-year change of +6.5%.
- Revenue- Application Operations: $1.80 billion versus $1.76 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +12.5% change.
- Revenue- Technology Consulting: $1 billion compared to the $990.10 million average estimate based on two analysts. The reported number represents a change of +11.1% year over year.
- Revenue- Business Transformation: $2.30 billion compared to the $2.32 billion average estimate based on two analysts. The reported number represents a change of +4.6% year over year.
- Revenue- Hybrid Platform & Solutions: $5.30 billion compared to the $5.32 billion average estimate based on two analysts. The reported number represents a change of +1.9% year over year.
- Revenue- Transaction Processing: $2.20 billion versus $2.05 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
View all Key Company Metrics for IBM here>>>Shares of IBM have returned +6.6% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.