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Compared to Estimates, IBM (IBM) Q1 Earnings: A Look at Key Metrics
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IBM (IBM - Free Report) reported $14.46 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 1.5%. EPS of $1.68 for the same period compares to $1.36 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $14.57 billion, representing a surprise of -0.75%. The company delivered an EPS surprise of +5.66%, with the consensus EPS estimate being $1.59.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: $193 million compared to the $191.61 million average estimate based on five analysts. The reported number represents a change of -1.5% year over year.
Revenue- Consulting: $5.19 billion versus the five-analyst average estimate of $5.34 billion. The reported number represents a year-over-year change of +4.5%.
Revenue- Infrastructure: $3.08 billion versus the five-analyst average estimate of $2.94 billion. The reported number represents a year-over-year change of -0.7%.
Revenue- Software: $5.90 billion versus the five-analyst average estimate of $6 billion.
Revenue- Other: $108 million versus the four-analyst average estimate of $89 million. The reported number represents a year-over-year change of +44%.
Revenue- Infrastructure Support: $1.30 billion versus the two-analyst average estimate of $1.30 billion. The reported number represents a year-over-year change of -7.1%.
Revenue- Hybrid Infrastructure: $1.80 billion versus the two-analyst average estimate of $1.69 billion. The reported number represents a year-over-year change of +5.9%.
Revenue- Application Operations: $1.90 billion versus the two-analyst average estimate of $1.98 billion. The reported number represents a year-over-year change of +11.8%.
Revenue- Technology Consulting: $900 million compared to the $959.38 million average estimate based on two analysts. The reported number represents a change of 0% year over year.
Revenue- Business Transformation: $2.30 billion versus the two-analyst average estimate of $2.36 billion. The reported number represents a year-over-year change of 0%.
Revenue- Hybrid Platform & Solutions: $4.10 billion compared to the $4.22 billion average estimate based on two analysts. The reported number represents a change of -2.4% year over year.
Revenue- Transaction Processing: $1.80 billion versus $1.78 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change.
Shares of IBM have returned -3.4% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Compared to Estimates, IBM (IBM) Q1 Earnings: A Look at Key Metrics
IBM (IBM - Free Report) reported $14.46 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 1.5%. EPS of $1.68 for the same period compares to $1.36 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $14.57 billion, representing a surprise of -0.75%. The company delivered an EPS surprise of +5.66%, with the consensus EPS estimate being $1.59.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: $193 million compared to the $191.61 million average estimate based on five analysts. The reported number represents a change of -1.5% year over year.
- Revenue- Consulting: $5.19 billion versus the five-analyst average estimate of $5.34 billion. The reported number represents a year-over-year change of +4.5%.
- Revenue- Infrastructure: $3.08 billion versus the five-analyst average estimate of $2.94 billion. The reported number represents a year-over-year change of -0.7%.
- Revenue- Software: $5.90 billion versus the five-analyst average estimate of $6 billion.
- Revenue- Other: $108 million versus the four-analyst average estimate of $89 million. The reported number represents a year-over-year change of +44%.
- Revenue- Infrastructure Support: $1.30 billion versus the two-analyst average estimate of $1.30 billion. The reported number represents a year-over-year change of -7.1%.
- Revenue- Hybrid Infrastructure: $1.80 billion versus the two-analyst average estimate of $1.69 billion. The reported number represents a year-over-year change of +5.9%.
- Revenue- Application Operations: $1.90 billion versus the two-analyst average estimate of $1.98 billion. The reported number represents a year-over-year change of +11.8%.
- Revenue- Technology Consulting: $900 million compared to the $959.38 million average estimate based on two analysts. The reported number represents a change of 0% year over year.
- Revenue- Business Transformation: $2.30 billion versus the two-analyst average estimate of $2.36 billion. The reported number represents a year-over-year change of 0%.
- Revenue- Hybrid Platform & Solutions: $4.10 billion compared to the $4.22 billion average estimate based on two analysts. The reported number represents a change of -2.4% year over year.
- Revenue- Transaction Processing: $1.80 billion versus $1.78 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change.
View all Key Company Metrics for IBM here>>>Shares of IBM have returned -3.4% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.