IBM (IBM) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Core Viewpoint - IBM is expected to report a year-over-year increase in earnings and revenues for the quarter ended March 2024, with the actual results having a significant impact on its near-term stock price [1] Earnings Expectations - The consensus estimate for IBM's quarterly earnings is $1.60 per share, reflecting a year-over-year change of +17.7% [2] - Expected revenues are $14.57 billion, which is a 2.2% increase from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised 0.22% higher in the last 30 days, indicating a slight positive reassessment by analysts [2] - The Most Accurate Estimate for IBM is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.61%, suggesting a bearish outlook from analysts [5] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [4] - IBM currently holds a Zacks Rank of 2, but the negative Earnings ESP makes it challenging to predict an earnings beat conclusively [5][6] Historical Performance - In the last reported quarter, IBM had an earnings surprise of +2.38%, reporting $3.87 per share against an expectation of $3.78 [7] - Over the past four quarters, IBM has consistently beaten consensus EPS estimates [7] Conclusion - While IBM does not appear to be a compelling candidate for an earnings beat based on current estimates, investors should consider other factors before making investment decisions [8]