Back to top

IBM Earnings Preview: Declining Revenue Streak Could Be Over

Read MoreHide Full Article

  • (0:30) - IBM Declining Revenues
  • (3:25) - Problematic Areas
  • (7:00) - When Will The Streak End?
  • (9:00) - The Takeaways:

On today’s episode of the Tech Talk Tuesday podcast, Ryan McQueeney previews the upcoming earnings report from IBM (IBM - Free Report) and highlights several key estimates that suggest the company’s streak of declining revenues could finally be over.

Remember to subscribe and leave a rating on iTunes if you enjoy the show!

IBM has reported a year-over-year decline in total revenues in 22 consecutive quarters. However, when the company reports its Q4 results on Thursday, the Zacks Consensus Estimate is calling for total revenues of $21.96 billion, which would actually represent year-over-year growth of about 0.87%.

So why is the Zacks Consensus Estimate calling for the streak to be snapped? To answer this question, Ryan turns to the Zacks Non-Financial Metrics Consensus Estimates File. These estimates, which break down key earnings report items like business segment revenues, are updated daily and are based on the independent research of expert stock analysts.

Much has been made about the growth of IBM’s cloud services and cognitive solutions categories, and these units are certainly the key growth drivers for the more than 100-year-old company. But as Ryan shows with several key NFM estimates, snapping the streak will also require better-than-usual performance in the company’s struggling divisions as well.

Make sure to tune into the show to hear more!

As a reminder, if you feel that we missed something, or if you want us to cover a different story, shoot us an email at Make sure to check out all of our other audio content at, and remember to subscribe and leave us a rating on iTunes.

As always, thanks for listening to the Zacks Tech Talk Tuesday Podcast; we will see you next time!

Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

International Business Machines Corporation (IBM) - free report >>

More from Zacks Zacks Friday Finish Line

You May Like