IBM expected to report Q3 EPS, revenue increase
IBM•IBM•IBM•IBM•IBM is expected to report adjusted third-quarter EPS of $2.86, up from $2.65 a year earlier, and revenue of $16.82 billion, up from $16.33 billion.
IBM shares rose about 1% Wednesday ahead of results due after the market close. Analysts expect adjusted EPS of $2.86 and revenue of $16.82 billion, compared with $2.65 and $16.33 billion, respectively, in the year-ago quarter.
In the past eight quarters, IBM beat EPS estimates seven times and revenue estimates six times. In July, IBM cut its annual revenue growth forecast after warning that corporate spending was shifting toward AI-focused data-center equipment at the expense of its software and mainframe computers.
Options imply a potential 7% share move in either direction by Friday, slightly above the average one-day post-earnings move of 6% over the past eight quarters. Among 27 analysts, seven rate the stock strong buy, six buy, 12 hold and two sell.
