IBM reports fourth-quarter earnings January 22

What's Happening With IBM View more about IBM >

International Business Machines (IBM) will report fourth-quarter earnings after the market close January 22. The company is expected to post earnings of $4.84 per share, down from $5.18 during the same period last year. IBM stock has fallen 11.0% since the end of June.

Technical Analysis

IBM was recently trading at $124.50 down $46.63 from its 12-month high and $18.56 above its 12-month low. InvestorsObserver’s Stock Score Report gives IBM a 19 long-term technical score and a 49 short-term technical score. The stock has recent support above $120 and recent resistance below $130. Of the 13 analysts who cover the stock 4 rate it Strong Buy, 1 rate it Buy, 7 rate it Hold, 0 rate it Sell, and 1 rate it Strong Sell, IBM gets a score of 41 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Wall Street remains skeptical of IBM’s turnaround program. The company failed to make the gains in cloud computing and artificial intelligence that it has been working to for years, which led to the massive $34 billion acquisition of RedHat announced last year. A lot of analysts believe IBM overpaid for RedHat and it will take many years to recoup the cost. RedHat is a leader in cloud computing, so the purchase does put IBM now that in that position, but it came at a big price. The stock was already showing weakness before the announcement and fell sharply on the news. The stock drop was compounded by a correction in the overall market, and IBM has started to recover but Wll Street will be quick to punish the stock on any signs of weakness in the upcoming report. The street is looking for a small beat for the quarter with a whisper number of $4.84. There is a lot of negativity priced into the stock at this time, so shareholders could see a nice rally following a better than expected set of numbers. Analysts do see some upside in the stock, with an average price target of $159.60.

IBM
About International Business Machines Corporation

IBM is an IT behemoth with an operating history of more than a century. The company's offerings span a range of services, software, and hardware. IBM operates on a global scale, with operations in over 170 countries; it generates a little more than half of its revenue outside the Americas. The company has an entrenched position globally within the largest multinational firms, providing an end-to-end portfolio that helps enterprises plan, build, manage, and maintain IT infrastructure, platforms, applications, and services.

  • Last Price:
    $142.97
  • Previous Close:
    $142.22
  • Change:
    $0.75 (0.53%)
  • Open:
    $142.46
  • Volume:
    3,077,766
  • Average Volume (100 Day):
    3,582,575
  • Market Capitalization:
    $126.7 B
  • Day's Range:
    $142.45 - $145.03
  • Dividend Yield:
    4.56%
  • 52-week Range:
    $154 - $105.94
  • P-E:
    13.80
  • EPS:
    $9.68
  • Earnings Date:
    10/15/19
  • Ex Dividend Date:
    8/8/19
  • Sector:
    Technology
  • Industry:
    Information Technology Services
  • Analyst Average Recommendation:
    Moderate Buy

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