Wall Street analysts forecast that IBM (IBM) will report quarterly earnings of $3.00 per share in its upcoming release, pointing to a year-over-year increase of 7.1%. It is anticipated that revenues will amount to $17.59 billion, exhibiting an increase of 3.6% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.5% higher 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.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some IBM metrics that Wall Street analysts commonly model and monitor.
Based on the collective assessment of analysts, 'Revenue- Software' should arrive at $8.11 billion. The estimate indicates a year-over-year change of +9.8%.
The collective assessment of analysts points to an estimated 'Revenue- Consulting' of $5.42 billion. The estimate indicates a year-over-year change of +2%.
The average prediction of analysts places 'Revenue- Financing' at $172.79 million. The estimate indicates a change of +4.1% from the prior-year quarter.
Analysts' assessment points toward 'Revenue- Infrastructure' reaching $4.03 billion. The estimate indicates a change of -2.7% from the prior-year quarter.
The consensus estimate for 'Revenue- Intelligent Operations' stands at $2.42 billion. The estimate indicates a change of +1% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Automation' will reach $2.03 billion. The estimate suggests a change of +7.1% year over year.
Analysts forecast 'Revenue- Strategy and Technology' to reach $2.97 billion. The estimate points to a change of +2.3% from the year-ago quarter.
Analysts predict that the 'Revenue- Hybrid Cloud' will reach $2.00 billion. The estimate points to a change of +11.2% from the year-ago quarter.
The consensus among analysts is that 'Revenue- Infrastructure Support' will reach $1.20 billion. The estimate indicates a change of -7.9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenue- Data' will likely reach $1.88 billion. The estimate suggests a change of +25.4% year over year.
Analysts expect 'Revenue- Transaction Processing' to come in at $2.29 billion. The estimate indicates a change of +4.1% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenue- Hybrid Infrastructure' should come in at $2.80 billion. The estimate points to a change of -3.6% from the year-ago quarter.
View all Key Company Metrics for IBM here>>>Shares of IBM have experienced a change of -14.6% in the past month compared to the +0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), IBM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Business Machines Corporation (IBM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).