Analysts Expect IBM (IBM) to Post $4.86 Earnings Per Share

Brokerages forecast that IBM (NYSE:IBM) will announce earnings of $4.86 per share for the current quarter, according to Zacks. Five analysts have issued estimates for IBM’s earnings. The lowest EPS estimate is $4.84 and the highest is $4.88. IBM posted earnings per share of $5.18 during the same quarter last year, which suggests a negative year over year growth rate of 6.2%. The business is expected to report its next quarterly earnings report on Thursday, January 17th.

According to Zacks, analysts expect that IBM will report full year earnings of $13.81 per share for the current financial year, with EPS estimates ranging from $13.79 to $13.90. For the next year, analysts expect that the company will post earnings of $14.02 per share, with EPS estimates ranging from $13.80 to $14.40. Zacks Investment Research’s earnings per share calculations are a mean average based on a survey of sell-side research analysts that follow IBM.

IBM (NYSE:IBM) last released its earnings results on Tuesday, October 16th. The technology company reported $3.42 EPS for the quarter, beating analysts’ consensus estimates of $3.40 by $0.02. IBM had a return on equity of 69.98% and a net margin of 7.12%. The company had revenue of $18.76 billion during the quarter, compared to the consensus estimate of $19.04 billion. During the same quarter last year, the company earned $3.30 earnings per share. IBM’s quarterly revenue was down 2.1% compared to the same quarter last year.

A number of research firms have commented on IBM. Zacks Investment Research downgraded IBM from a “hold” rating to a “sell” rating in a report on Wednesday, October 3rd. Moffett Nathanson began coverage on IBM in a report on Thursday, October 4th. They issued a “sell” rating and a $150.00 target price for the company. JPMorgan Chase & Co. reissued a “$149.24” rating and issued a $157.00 target price on shares of IBM in a report on Thursday, July 19th. Societe Generale set a $149.00 target price on IBM and gave the company a “sell” rating in a report on Thursday, July 19th. Finally, Wedbush reissued a “neutral” rating and issued a $185.00 target price on shares of IBM in a report on Thursday, July 19th. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and ten have assigned a buy rating to the stock. IBM currently has a consensus rating of “Hold” and an average target price of $165.02.

IBM stock opened at $123.38 on Friday. IBM has a one year low of $114.09 and a one year high of $171.13. The company has a debt-to-equity ratio of 1.81, a current ratio of 1.31 and a quick ratio of 1.26. The firm has a market capitalization of $111.89 billion, a price-to-earnings ratio of 8.94, a price-to-earnings-growth ratio of 1.79 and a beta of 1.18.

The company also recently declared 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. This represents a $6.28 annualized dividend and a dividend yield of 5.09%. The ex-dividend date of this dividend is Thursday, November 8th. IBM’s dividend payout ratio (DPR) is presently 45.51%.

IBM declared that its board has initiated a stock repurchase program on Tuesday, October 30th that permits the company to buyback $4.00 billion in shares. This buyback authorization permits the technology company to reacquire up to 3.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

In other news, Director Sidney Taurel purchased 4,311 shares of the business’s stock in a transaction dated Wednesday, October 31st. The stock was acquired at an average price of $115.02 per share, with a total value of $495,851.22. Following the purchase, the director now directly owns 19,987 shares of the company’s stock, valued at approximately $2,298,904.74. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Chairman Virginia M. Rometty purchased 8,500 shares of the business’s stock in a transaction dated Friday, November 2nd. The shares were purchased at an average cost of $117.51 per share, with a total value of $998,835.00. Following the purchase, the chairman now directly owns 11,368 shares in the company, valued at $1,335,853.68. The disclosure for this purchase can be found here. Insiders own 0.17% of the company’s stock.

Several large investors have recently added to or reduced their stakes in IBM. Schroder Investment Management Group grew its holdings in IBM by 24.1% in the 2nd quarter. Schroder Investment Management Group now owns 1,854,109 shares of the technology company’s stock valued at $259,649,000 after buying an additional 359,868 shares during the period. Swedbank grew its holdings in IBM by 214.6% in the 3rd quarter. Swedbank now owns 1,123,724 shares of the technology company’s stock valued at $169,918,000 after buying an additional 766,478 shares during the period. Fort Washington Investment Advisors Inc. OH grew its holdings in IBM by 1.7% in the 3rd quarter. Fort Washington Investment Advisors Inc. OH now owns 555,127 shares of the technology company’s stock valued at $83,941,000 after buying an additional 9,215 shares during the period. Aperio Group LLC grew its holdings in IBM by 9.0% in the 3rd quarter. Aperio Group LLC now owns 454,228 shares of the technology company’s stock valued at $68,684,000 after buying an additional 37,393 shares during the period. Finally, Nisa Investment Advisors LLC grew its holdings in IBM by 3.6% in the 3rd quarter. Nisa Investment Advisors LLC now owns 320,951 shares of the technology company’s stock valued at $48,531,000 after buying an additional 11,129 shares during the period. 55.33% of the stock is owned by institutional investors and hedge funds.

IBM Company Profile

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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Earnings History and Estimates for IBM (NYSE:IBM)

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