Earnings: IBM reported Q2 earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.16 per share.
This is an increase from $2.18 per share in the same quarter last year and represents a 12.50% earnings surprise.
Revenue: The company posted revenues of $15.77 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.23%. This is up from $15.48 billion a year ago.
Performance Metrics:
IBM has beaten EPS estimates in all four quarters over the past year. In the previous quarter, the company reported earnings of $1.68 per share versus an expected $1.59, resulting in a 5.66% surprise.
The stock has gained about 12.6% year-to-date, compared to the S&P 500’s 16.5% gain.
Future Outlook:
Estimate Revisions: The trend of estimate revisions for IBM is favorable. The Zacks Rank for IBM is #2 (Buy), suggesting that the stock is expected to outperform the market in the near future.
Consensus Estimates: For the coming quarter, the consensus EPS estimate is $2.24 on revenues of $15.06 billion. For the current fiscal year, estimates are $9.90 EPS on revenues of $62.97 billion.
Industry Context:
Zacks Industry Rank: IBM is part of the Computer - Integrated Systems industry, which is currently in the bottom 32% of over 250 Zacks industries. Historically, the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1.
Peer Performance: PAR Technology (PAR), another company in the same industry, is expected to report a quarterly loss of $0.15 per share, a 71.2% year-over-year change. Revenue for PAR Technology is expected to be $116.65 million, up 16% from the previous year.
Conclusion:
IBM’s strong earnings and revenue performance exceed estimates, but its stock has lagged the broader market. Investors should monitor future earnings estimates and industry trends for a clearer picture of the stock’s performance potential.
This is an increase from $2.18 per share in the same quarter last year and represents a 12.50% earnings surprise.
Revenue: The company posted revenues of $15.77 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.23%. This is up from $15.48 billion a year ago.
Performance Metrics:
IBM has beaten EPS estimates in all four quarters over the past year. In the previous quarter, the company reported earnings of $1.68 per share versus an expected $1.59, resulting in a 5.66% surprise.
The stock has gained about 12.6% year-to-date, compared to the S&P 500’s 16.5% gain.
Future Outlook:
Estimate Revisions: The trend of estimate revisions for IBM is favorable. The Zacks Rank for IBM is #2 (Buy), suggesting that the stock is expected to outperform the market in the near future.
Consensus Estimates: For the coming quarter, the consensus EPS estimate is $2.24 on revenues of $15.06 billion. For the current fiscal year, estimates are $9.90 EPS on revenues of $62.97 billion.
Industry Context:
Zacks Industry Rank: IBM is part of the Computer - Integrated Systems industry, which is currently in the bottom 32% of over 250 Zacks industries. Historically, the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1.
Peer Performance: PAR Technology (PAR), another company in the same industry, is expected to report a quarterly loss of $0.15 per share, a 71.2% year-over-year change. Revenue for PAR Technology is expected to be $116.65 million, up 16% from the previous year.
Conclusion:
IBM’s strong earnings and revenue performance exceed estimates, but its stock has lagged the broader market. Investors should monitor future earnings estimates and industry trends for a clearer picture of the stock’s performance potential.