Equities analysts expect IBM (NYSE:IBM) to post sales of $21.77 billion for the current fiscal quarter, Zacks Investment Research reports. Five analysts have issued estimates for IBM’s earnings, with estimates ranging from $21.22 billion to $21.97 billion. IBM reported sales of $22.54 billion in the same quarter last year, which would suggest a negative year over year growth rate of 3.4%. The company is scheduled to report its next earnings report on Thursday, January 17th.
According to Zacks, analysts expect that IBM will report full year sales of $79.56 billion for the current year, with estimates ranging from $79.06 billion to $79.80 billion. For the next year, analysts expect that the business will post sales of $79.08 billion, with estimates ranging from $77.55 billion to $80.85 billion. Zacks Investment Research’s sales calculations are an average based on a survey of sell-side analysts that that provide coverage for IBM.
IBM (NYSE:IBM) last issued its earnings results on Tuesday, October 16th. The technology company reported $3.42 earnings per share for the quarter, topping the consensus estimate of $3.40 by $0.02. The company had revenue of $18.76 billion during the quarter, compared to the consensus estimate of $19.04 billion. IBM had a net margin of 7.12% and a return on equity of 69.98%. IBM’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.30 EPS.
Shares of IBM stock opened at $125.31 on Tuesday. The firm has a market capitalization of $112.94 billion, a P/E ratio of 8.79, a PEG ratio of 1.81 and a beta of 1.20. The company has a quick ratio of 1.26, a current ratio of 1.31 and a debt-to-equity ratio of 1.81. IBM has a fifty-two week low of $114.09 and a fifty-two week high of $171.13.
IBM announced that its board has approved a stock buyback program on Tuesday, October 30th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the technology company to purchase up to 3.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 10th. Stockholders of record on Friday, November 9th will be paid a dividend of $1.57 per share. The ex-dividend date of this dividend is Thursday, November 8th. This represents a $6.28 annualized dividend and a dividend yield of 5.01%. IBM’s payout ratio is currently 45.51%.
In related news, Director Sidney Taurel acquired 4,311 shares of the stock in a transaction dated Wednesday, October 31st. The stock was acquired at an average cost of $115.02 per share, for a total transaction of $495,851.22. Following the completion of the purchase, the director now owns 19,987 shares of the company’s stock, valued at approximately $2,298,904.74. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, Chairman Virginia M. Rometty acquired 8,500 shares of the stock in a transaction dated Friday, November 2nd. The shares were bought at an average price of $117.51 per share, with a total value of $998,835.00. Following the completion of the purchase, the chairman now directly owns 11,368 shares of the company’s stock, valued at approximately $1,335,853.68. The disclosure for this purchase can be found here. Insiders own 0.17% of the company’s stock.
Several institutional investors have recently modified their holdings of IBM. Lathrop Investment Management Corp purchased a new stake in shares of IBM in the 3rd quarter valued at approximately $215,000. Paloma Partners Management Co raised its stake in shares of IBM by 127.4% in the 3rd quarter. Paloma Partners Management Co now owns 1,453 shares of the technology company’s stock valued at $220,000 after acquiring an additional 6,757 shares during the period. Harvest Fund Management Co. Ltd purchased a new stake in shares of IBM in the 3rd quarter valued at approximately $233,000. Almanack Investment Partners LLC. purchased a new stake in shares of IBM in the 3rd quarter valued at approximately $443,000. Finally, Accuvest Global Advisors purchased a new stake in shares of IBM in the 3rd quarter valued at approximately $525,000. 56.48% of the stock is owned by hedge funds and other institutional investors.
International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers.
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