Zacks: Analysts Expect IBM (IBM) Will Announce Quarterly Sales of $21.77 Billion

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.

Several brokerages recently weighed in on IBM. UBS Group set a $180.00 target price on shares of IBM and gave the stock a “buy” rating in a report on Wednesday, October 10th. JPMorgan Chase & Co. restated a “neutral” rating and issued a $160.00 target price on shares of IBM in a research note on Wednesday, October 17th. Zacks Investment Research downgraded shares of IBM from a “buy” rating to a “hold” rating in a research note on Wednesday, September 19th. ValuEngine downgraded shares of IBM from a “hold” rating to a “sell” rating in a research note on Wednesday, October 17th. Finally, Bank of America restated a “buy” rating and issued a $200.00 target price on shares of IBM in a research note on Wednesday, October 17th. Three research analysts have rated the stock with a sell rating, ten have given a hold rating and nine have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $165.02.

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.

About IBM

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.

Further Reading: How to Invest in an Index Fund

Get a free copy of the Zacks research report on IBM (IBM)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Earnings History and Estimates for IBM (NYSE:IBM)

Receive News & Ratings for IBM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for IBM and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on reddit