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Compared to Estimates, IBM (IBM) Q4 Earnings: A Look at Key Metrics
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For the quarter ended December 2024, IBM (IBM - Free Report) reported revenue of $17.55 billion, up 1% over the same period last year. EPS came in at $3.92, compared to $3.87 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $17.56 billion, representing a surprise of -0.05%. The company delivered an EPS surprise of +5.09%, with the consensus EPS estimate being $3.73.
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: $170 million compared to the $168.98 million average estimate based on five analysts. The reported number represents a change of -2.9% year over year.
Revenue- Consulting: $5.18 billion compared to the $5.26 billion average estimate based on five analysts. The reported number represents a change of +2.5% year over year.
Revenue- Infrastructure: $4.26 billion versus $4.22 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -7.6% change.
Revenue- Software: $7.92 billion versus the five-analyst average estimate of $7.81 billion. The reported number represents a year-over-year change of +5.5%.
Revenue- Other: $29 million versus $55.73 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -29.3% change.
Revenue- Infrastructure Support: $1.30 billion versus the two-analyst average estimate of $1.21 billion. The reported number represents a year-over-year change of 0%.
Revenue- Hybrid Infrastructure: $3 billion compared to the $3.14 billion average estimate based on two analysts. The reported number represents a change of -9.1% year over year.
Revenue- Application Operations: $1.90 billion versus $1.97 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.6% change.
Revenue- Technology Consulting: $900 million compared to the $959.70 million average estimate based on two analysts. The reported number represents a change of -10% year over year.
Revenue- Business Transformation: $2.30 billion compared to the $2.35 billion average estimate based on two analysts. The reported number represents a change of 0% year over year.
Revenue- Hybrid Platform & Solutions: $5.50 billion versus $5.34 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change.
Revenue- Transaction Processing: $2.40 billion compared to the $2.29 billion average estimate based on two analysts. The reported number represents a change of +9.1% year over year.
Shares of IBM have returned +2.7% over the past month versus the Zacks S&P 500 composite's +1.7% 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) Q4 Earnings: A Look at Key Metrics
For the quarter ended December 2024, IBM (IBM - Free Report) reported revenue of $17.55 billion, up 1% over the same period last year. EPS came in at $3.92, compared to $3.87 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $17.56 billion, representing a surprise of -0.05%. The company delivered an EPS surprise of +5.09%, with the consensus EPS estimate being $3.73.
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: $170 million compared to the $168.98 million average estimate based on five analysts. The reported number represents a change of -2.9% year over year.
- Revenue- Consulting: $5.18 billion compared to the $5.26 billion average estimate based on five analysts. The reported number represents a change of +2.5% year over year.
- Revenue- Infrastructure: $4.26 billion versus $4.22 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -7.6% change.
- Revenue- Software: $7.92 billion versus the five-analyst average estimate of $7.81 billion. The reported number represents a year-over-year change of +5.5%.
- Revenue- Other: $29 million versus $55.73 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -29.3% change.
- Revenue- Infrastructure Support: $1.30 billion versus the two-analyst average estimate of $1.21 billion. The reported number represents a year-over-year change of 0%.
- Revenue- Hybrid Infrastructure: $3 billion compared to the $3.14 billion average estimate based on two analysts. The reported number represents a change of -9.1% year over year.
- Revenue- Application Operations: $1.90 billion versus $1.97 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.6% change.
- Revenue- Technology Consulting: $900 million compared to the $959.70 million average estimate based on two analysts. The reported number represents a change of -10% year over year.
- Revenue- Business Transformation: $2.30 billion compared to the $2.35 billion average estimate based on two analysts. The reported number represents a change of 0% year over year.
- Revenue- Hybrid Platform & Solutions: $5.50 billion versus $5.34 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change.
- Revenue- Transaction Processing: $2.40 billion compared to the $2.29 billion average estimate based on two analysts. The reported number represents a change of +9.1% year over year.
View all Key Company Metrics for IBM here>>>Shares of IBM have returned +2.7% over the past month versus the Zacks S&P 500 composite's +1.7% 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.