Technology and consulting giant IBM (NYSE: IBM) will be announcing earnings results this Wednesday after market close. Here’s what to look for.
IBM beat analysts’ revenue expectations last quarter, reporting revenues of $19.69 billion, up 12.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Is IBM a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting IBM’s revenue to grow 8% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. IBM has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at IBM’s peers in the it services & other tech segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Accenture delivered year-on-year revenue growth of 8.3%, beating analysts’ expectations by 0.8%, and Applied Digital reported revenues up 139%, topping estimates by 67.3%. Accenture traded up 2.5% following the results while Applied Digital was down 8%.
Read our full analysis of Accenture’s results here and Applied Digital’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 10.8% on average over the last month. IBM is up 2.5% during the same time and is heading into earnings with an average analyst price target of $296.33 (compared to the current share price of $254.63).
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