Why IBM Stock Rose despite Another Revenue Fall
While IBM beat 3Q17 earnings and revenue expectations, its revenues continued to slide, representing the 22nd-straight quarter of revenue growth decline.
Of the 24 analysts tracking Juniper (JNPR), four have given the stock a “buy” recommendation and 18 have recommended a “hold.”
According to IDC, the worldwide security appliance market rose in terms of shipments and revenue in 2Q17. Revenue rose 9.2% YoY (year-over-year) to $3 billion.
According to market research firm IDC, the worldwide ethernet switch market rose 7.8% YoY (year-over-year) to $6.43 billion in 2Q17.
We saw earlier in this series that Juniper (JNPR) has reduced its revenue and EPS (earnings per share) guidance for 3Q17 as management expects lower-than-estimated sales from the Cloud business vertical
Juniper (JNPR) currently has a dividend yield of 1.5%, or $0.10, which indicates an annualized dividend payout of $0.40. Juniper has a dividend payout ratio of 22%
Analysts expect technology (QQQ) company Juniper’s (JNPR) revenue to rise 3.7% YoY (year-over-year) to $5.17 billion in fiscal 2017, compared to revenue of $4.99 billion in fiscal 2016.
Analysts expect the US-based (SPY) Juniper (JNPR) to post revenue of $1.29 billion in 3Q17. Wall Street has a high revenue estimate of $1.35 billion and a low estimate of $1.25 billion for 3Q17.
Banking giant Wells Fargo (WFC) has taken a huge leap in mobile payments. The bank has already upgraded nearly half of its ATMs with new technology.
Dell (DVMT) is betting big on IoT (Internet of Things). The company will be investing $1 billion in the space over the next three years.
Of the 25 analysts covering IBM stock, 60% recommended a “hold” on October 10, 2017. About 24% recommended a “buy,” and 24% recommended a “sell.”
On October 10, 2017, IBM’s forward EV-to-EBITDA multiple was ~9.0x. That metric was lower than Microsoft’s multiple of ~13.6x and Oracle’s multiple of ~10.0x.
Gartner expects enterprise software spending to grow 8.6% to $326.0 billion in 2017.
Earlier in this series, we discussed the factors that weighed on IBM stock. If IBM’S (IBM) soon-to-be-announced 3Q17 earnings can beat analyst and market expectations, it could provide a significant…
IBM’s changed focus and strategy have caused its top line to fall 24% in the last five years, and its adjusted earnings per share fell 10%.
IBM’s cloud-as-a-service run rate rose 32.0% in constant currency terms and reached an annual run rate of $8.8 billion in 2Q17.
IBM’s Strategic Imperatives segment’s revenues grew 7% on a constant currency basis to reach $8.8 billion in 2Q17.
Before Vivant Digital, IBM made several acquisitions in 2016 to boost its iX business. IBM acquired Ecx.io, Aperto, Resource/Ammirati, Bluewolf Group, and Expert Personal Shopper.
On October 4, 2017, IBM announced the acquisition of Vivant Digital, an Australia-based (EWA) digital and innovation agency.
The global blockchain technology market was worth ~$210.0 million in 2016, and it is expected to become a $339.5 million market in 2017.