when-does-ibm-report-earnings-1602764396855.jpg
Source: istock

What to Watch for in IBM’s Q3 Earnings

By

Updated

IBM is set to release its third-quarter earnings report on Oct.19 after the markets close. Let’s look at Wall Street analysts’ expectations for the third quarter.

Article continues below advertisement

When is IBM’s earnings date?

IBM will likely report its third-quarter financial results on Oct. 19 during the after-hours trading session. The technology company has scheduled an earnings conference call with investors and analysts on the same day at 5:00 p.m. ET. 

ibm-earnings-q3-1602763828232.jpg
Source: Getty
Article continues below advertisement

In the third quarter, Wall Street analysts expect IBM to post sales of $17.5 billion, which would be 2.7 percent lower than $18.0 billion in sales in the third quarter of 2019. Analysts also expect IBM to post an adjusted EPS of $2.58 in the third quarter compared to $2.68 in the same period a year ago. 

Investors should watch out for IBM’s cloud revenues in the third quarter. The company’s cloud revenue has grown significantly in the recent quarters. IBM's cloud revenue rose by 31 percent in the second quarter even though its consolidated revenues declined.

Article continues below advertisement

What is IBM’s stock price?

IBM stock trades on the NYSE under the ticker symbol “IBM.” The stock was down about 0.6 percent at $125.15 in the pre-market trading session on Thursday, Oct. 15 as of 4:02 a.m. ET. The stock rose 0.7 percent on Oct. 14 and closed at $125.94 with a market capitalization of $112.2 billion.

Article continues below advertisement

IBM stock has fallen by 4.2 percent in the last five days and 6.2 percent in the last year. IBM stock is trading 20.7 percent below its 52-week high of $158.75 and 39.1 percent above its 52-week low of $90.56.

What is IBM’s dividend yield?

As of Oct. 14, IBM’s dividend yield stands at 5.21 percent. Currently, the company pays an annual dividend of $6.52 per share. IBM has increased its dividend for the past 20 years by an average of 5.35 percent each year.

Article continues below advertisement
ibm-stock-price-1602763925852.jpg
Source: istock

What is IBM’s stock forecast?

Currently, analysts' stock price forecast for IBM is $136.87, which suggests an 8.7 percent upside. The highest target price of $161 implies a 27.8 percent upside, while the lowest target price of $117 suggests a 7.1 percent downside. Among the 25 Wall Street analysts tracking IBM, seven recommend a buy, 15 recommend a hold, and three recommend a sell.

IBM's investor relations

IBM has scheduled a third-quarter earnings conference call on Oct. 19 at 5:00 p.m. ET. Investors and analysts can access the webcast through the investor relations section of the company’s website.

Advertisement

More From Market Realist