Analysts Expect IBM (NYSE:IBM) Will Post Earnings of $1.78 Per Share

Analysts predict that IBM (NYSE:IBM) will report $1.78 earnings per share (EPS) for the current quarter, according to Zacks. Three analysts have made estimates for IBM’s earnings. The lowest EPS estimate is $1.43 and the highest is $2.00. IBM reported earnings of $3.17 per share in the same quarter last year, which suggests a negative year over year growth rate of 43.8%. The firm is expected to issue its next quarterly earnings report on Wednesday, July 15th.

According to Zacks, analysts expect that IBM will report full-year earnings of $11.29 per share for the current year, with EPS estimates ranging from $10.25 to $12.06. For the next fiscal year, analysts expect that the firm will report earnings of $12.14 per share, with EPS estimates ranging from $10.41 to $12.82. Zacks Investment Research’s earnings per share calculations are an average based on a survey of sell-side research analysts that that provide coverage for IBM.

IBM (NYSE:IBM) last posted its earnings results on Monday, April 20th. The technology company reported $1.84 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.79 by $0.05. The company had revenue of $17.57 billion during the quarter, compared to the consensus estimate of $17.62 billion. IBM had a net margin of 11.78% and a return on equity of 57.55%. During the same period in the previous year, the firm posted $2.25 earnings per share.

IBM has been the subject of several recent analyst reports. Wells Fargo & Co decreased their price objective on shares of IBM from $145.00 to $120.00 and set an “equal weight” rating for the company in a report on Tuesday, April 14th. Wedbush decreased their price objective on shares of IBM from $155.00 to $140.00 and set a “neutral” rating for the company in a report on Tuesday, April 21st. Zacks Investment Research upgraded shares of IBM from a “sell” rating to a “hold” rating and set a $140.00 price target on the stock in a research report on Monday, June 8th. Citigroup boosted their price target on IBM from $110.00 to $120.00 and gave the company a “neutral” rating in a research note on Wednesday, April 22nd. Finally, Stifel Nicolaus lowered their price objective on IBM from $169.00 to $147.00 and set a “buy” rating on the stock in a research note on Wednesday, April 15th. One investment analyst has rated the stock with a sell rating, thirteen have issued a hold rating and five have given a buy rating to the stock. IBM currently has an average rating of “Hold” and a consensus target price of $135.00.

Shares of NYSE IBM traded down $0.26 during trading hours on Thursday, hitting $119.49. 83,957 shares of the stock were exchanged, compared to its average volume of 5,646,062. The company has a debt-to-equity ratio of 2.62, a current ratio of 0.96 and a quick ratio of 0.91. The company’s 50 day moving average is $122.56 and its 200 day moving average is $127.93. The firm has a market capitalization of $106.27 billion, a P/E ratio of 11.90, a P/E/G ratio of 3.04 and a beta of 1.22. IBM has a one year low of $90.56 and a one year high of $158.75.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were issued a dividend of $1.63 per share. This is an increase from IBM’s previous quarterly dividend of $1.62. The ex-dividend date of this dividend was Thursday, May 7th. This represents a $6.52 annualized dividend and a yield of 5.46%. IBM’s dividend payout ratio is currently 50.90%.

A number of large investors have recently bought and sold shares of the business. Abbrea Capital LLC lifted its holdings in IBM by 1.7% during the 1st quarter. Abbrea Capital LLC now owns 5,345 shares of the technology company’s stock worth $593,000 after buying an additional 90 shares in the last quarter. Armstrong Henry H Associates Inc. grew its holdings in shares of IBM by 1.4% during the 1st quarter. Armstrong Henry H Associates Inc. now owns 6,644 shares of the technology company’s stock worth $737,000 after purchasing an additional 90 shares in the last quarter. Burns J W & Co. Inc. NY grew its holdings in shares of IBM by 5.3% during the 1st quarter. Burns J W & Co. Inc. NY now owns 1,996 shares of the technology company’s stock worth $221,000 after purchasing an additional 100 shares in the last quarter. Country Trust Bank grew its holdings in shares of IBM by 6.0% during the 1st quarter. Country Trust Bank now owns 2,482 shares of the technology company’s stock worth $275,000 after purchasing an additional 140 shares in the last quarter. Finally, Mount Vernon Associates Inc. MD grew its holdings in shares of IBM by 4.8% during the 1st quarter. Mount Vernon Associates Inc. MD now owns 6,505 shares of the technology company’s stock worth $722,000 after purchasing an additional 300 shares in the last quarter. 56.84% of the stock is currently owned by hedge funds and other institutional investors.

About IBM

International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers a portfolio of enterprise artificial intelligence platforms, such as analytics and data management platforms, cloud data services, talent management, and industry solutions primarily under the Watson Platform, Watson Health, and Watson Internet of Things names.

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