IBM Needs an Earnings Win Next Week
After surging 20% in 2016, shares of International Business Machines (NYSE: IBM) fell back into a funk this year. The stock is down about 7.5% year to date, driven lower by a disappointing first-quarter report in April. While IBM beat expectations for earnings, the delayed closing of a few major services deals led the company to miss on revenue.
IBM will have a chance to redeem itself when it reports its second-quarter results after the market closes on July 18. At least one of those delayed deals, a $1.7 billion cloud services pact with a major U.K. bank, was completed during the second quarter, as was a high-profile deal with seven European banks to build a trade finance platform based on blockchain, the technology that underlies cryptocurrencies like bitcoin.
Another quarterly revenue decline is likely, which will extend IBM's infamous streak to 21 consecutive quarters. IBM has beaten the average analyst estimate for earnings for 10 straight quarters, though, and another beat would provide some good news for investors. IBM will also likely reiterate its full-year earnings and free cash flow guidance, which calls for adjusted earnings per share of at least $13.80 and flat free cash flow compared to 2016.
Source: Fool.com
International Business Machines Corp Stock
With 11 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 169 € shows a slightly positive potential of 8.71% compared to the current price of 155.46 € for International Business Machines Corp.
