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IBM Earnings Preview: Declining Revenue Streak Could Be Over

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

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.

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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 podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, 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!

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