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IBM (IBM) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates
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Wall Street analysts forecast that IBM (IBM - Free Report) will report quarterly earnings of $1.81 per share in its upcoming release, pointing to a year-over-year increase of 13.1%. It is anticipated that revenues will amount to $15.65 billion, exhibiting an increase of 7.7% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance 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.
Given this perspective, it's time to examine the average forecasts of specific IBM metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts' assessment points toward 'Revenue- Software' reaching $7.03 billion. The estimate indicates a year-over-year change of +11%.
The consensus estimate for 'Revenue- Consulting' stands at $5.28 billion. The estimate indicates a change of +4.2% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Other' will reach $50.10 million. The estimate suggests a change of -17.9% year over year.
Analysts predict that the 'Revenue- Infrastructure' will reach $3.12 billion. The estimate indicates a year-over-year change of +8.2%.
According to the collective judgment of analysts, 'Revenue- Infrastructure Support' should come in at $1.30 billion. The estimate indicates a change of +8% from the prior-year quarter.
Analysts forecast 'Revenue- Transaction Processing' to reach $1.93 billion. The estimate indicates a change of +7.4% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenue- Hybrid Infrastructure' will likely reach $1.94 billion. The estimate suggests a change of +21.1% year over year.
The consensus among analysts is that 'Gross Profit- Consulting' will reach $1.46 billion. The estimate compares to the year-ago value of $1.38 billion.
The collective assessment of analysts points to an estimated 'Gross Profit- Infrastructure' of $1.70 billion. The estimate compares to the year-ago value of $1.52 billion.
Based on the collective assessment of analysts, 'Gross Profit- Software' should arrive at $5.89 billion. The estimate is in contrast to the year-ago figure of $5.29 billion.
The average prediction of analysts places 'Segment Profit- Software' at $2.03 billion. The estimate compares to the year-ago value of $1.85 billion.
Analysts expect 'Segment Profit- Infrastructure' to come in at $347.63 million. The estimate is in contrast to the year-ago figure of $248.00 million.
Over the past month, IBM shares have recorded returns of +0.3% versus the Zacks S&P 500 composite's +5.2% change. Based on its Zacks Rank #3 (Hold), IBM will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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IBM (IBM) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates
Wall Street analysts forecast that IBM (IBM - Free Report) will report quarterly earnings of $1.81 per share in its upcoming release, pointing to a year-over-year increase of 13.1%. It is anticipated that revenues will amount to $15.65 billion, exhibiting an increase of 7.7% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance 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.
Given this perspective, it's time to examine the average forecasts of specific IBM metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts' assessment points toward 'Revenue- Software' reaching $7.03 billion. The estimate indicates a year-over-year change of +11%.
The consensus estimate for 'Revenue- Consulting' stands at $5.28 billion. The estimate indicates a change of +4.2% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Other' will reach $50.10 million. The estimate suggests a change of -17.9% year over year.
Analysts predict that the 'Revenue- Infrastructure' will reach $3.12 billion. The estimate indicates a year-over-year change of +8.2%.
According to the collective judgment of analysts, 'Revenue- Infrastructure Support' should come in at $1.30 billion. The estimate indicates a change of +8% from the prior-year quarter.
Analysts forecast 'Revenue- Transaction Processing' to reach $1.93 billion. The estimate indicates a change of +7.4% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenue- Hybrid Infrastructure' will likely reach $1.94 billion. The estimate suggests a change of +21.1% year over year.
The consensus among analysts is that 'Gross Profit- Consulting' will reach $1.46 billion. The estimate compares to the year-ago value of $1.38 billion.
The collective assessment of analysts points to an estimated 'Gross Profit- Infrastructure' of $1.70 billion. The estimate compares to the year-ago value of $1.52 billion.
Based on the collective assessment of analysts, 'Gross Profit- Software' should arrive at $5.89 billion. The estimate is in contrast to the year-ago figure of $5.29 billion.
The average prediction of analysts places 'Segment Profit- Software' at $2.03 billion. The estimate compares to the year-ago value of $1.85 billion.
Analysts expect 'Segment Profit- Infrastructure' to come in at $347.63 million. The estimate is in contrast to the year-ago figure of $248.00 million.
View all Key Company Metrics for IBM here>>>Over the past month, IBM shares have recorded returns of +0.3% versus the Zacks S&P 500 composite's +5.2% change. Based on its Zacks Rank #3 (Hold), IBM will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .