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Unveiling IBM (IBM) Q2 Outlook: Wall Street Estimates for Key Metrics
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The upcoming report from IBM (IBM - Free Report) is expected to reveal quarterly earnings of $2.64 per share, indicating an increase of 8.6% compared to the year-ago period. Analysts forecast revenues of $16.58 billion, representing an increase of 5.1% year over year.
Over the last 30 days, there has been a downward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain IBM metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Revenue- Infrastructure' will reach $3.66 billion. The estimate points to a change of +0.3% from the year-ago quarter.
Analysts expect 'Revenue- Software' to come in at $7.48 billion. The estimate indicates a year-over-year change of +11%.
Analysts' assessment points toward 'Revenue- Consulting' reaching $5.21 billion. The estimate indicates a year-over-year change of +0.6%.
Analysts forecast 'Revenue- Hybrid Infrastructure' to reach $2.39 billion. The estimate indicates a change of -0.6% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenue- Transaction Processing' should arrive at $2.28 billion. The estimate indicates a year-over-year change of +3.8%.
The consensus estimate for 'Revenue- Infrastructure Support' stands at $1.25 billion. The estimate indicates a year-over-year change of -3.7%.
The collective assessment of analysts points to an estimated 'Revenue- Other' of $51.29 million. The estimate suggests a change of +35% year over year.
According to the collective judgment of analysts, 'Gross Profit- Consulting' should come in at $1.37 billion. Compared to the current estimate, the company reported $1.36 billion in the same quarter of the previous year.
The average prediction of analysts places 'Gross Profit- Infrastructure' at $2.01 billion. Compared to the present estimate, the company reported $2.06 billion in the same quarter last year.
The consensus among analysts is that 'Gross Profit- Software' will reach $6.25 billion. Compared to the present estimate, the company reported $5.63 billion in the same quarter last year.
Shares of IBM have demonstrated returns of -0.4% over the past month compared to the Zacks S&P 500 composite's +5.4% change. With a Zacks Rank #4 (Sell), IBM is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Unveiling IBM (IBM) Q2 Outlook: Wall Street Estimates for Key Metrics
The upcoming report from IBM (IBM - Free Report) is expected to reveal quarterly earnings of $2.64 per share, indicating an increase of 8.6% compared to the year-ago period. Analysts forecast revenues of $16.58 billion, representing an increase of 5.1% year over year.
Over the last 30 days, there has been a downward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain IBM metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Revenue- Infrastructure' will reach $3.66 billion. The estimate points to a change of +0.3% from the year-ago quarter.
Analysts expect 'Revenue- Software' to come in at $7.48 billion. The estimate indicates a year-over-year change of +11%.
Analysts' assessment points toward 'Revenue- Consulting' reaching $5.21 billion. The estimate indicates a year-over-year change of +0.6%.
Analysts forecast 'Revenue- Hybrid Infrastructure' to reach $2.39 billion. The estimate indicates a change of -0.6% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenue- Transaction Processing' should arrive at $2.28 billion. The estimate indicates a year-over-year change of +3.8%.
The consensus estimate for 'Revenue- Infrastructure Support' stands at $1.25 billion. The estimate indicates a year-over-year change of -3.7%.
The collective assessment of analysts points to an estimated 'Revenue- Other' of $51.29 million. The estimate suggests a change of +35% year over year.
According to the collective judgment of analysts, 'Gross Profit- Consulting' should come in at $1.37 billion. Compared to the current estimate, the company reported $1.36 billion in the same quarter of the previous year.
The average prediction of analysts places 'Gross Profit- Infrastructure' at $2.01 billion. Compared to the present estimate, the company reported $2.06 billion in the same quarter last year.
The consensus among analysts is that 'Gross Profit- Software' will reach $6.25 billion. Compared to the present estimate, the company reported $5.63 billion in the same quarter last year.
View all Key Company Metrics for IBM here>>>Shares of IBM have demonstrated returns of -0.4% over the past month compared to the Zacks S&P 500 composite's +5.4% change. With a Zacks Rank #4 (Sell), IBM is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .