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IBM Third Quarter Earnings Preview
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IBM (NYSE:IBM) is expected to report increased earnings when it releases its third quarter results on Tuesday, October 16, 2012. The consensus estimate is anticipating a profit of $3.61 a share, an increase from last year's $3.28 per share.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Earnings: Quality Means Everything
What to Expect: IBM is expected to report $3.61 per share, up 10.1% from a year ago when the company reported earnings of $3.28 per share.
The consensus estimate is down from $3.62 three months ago, but it hasn't changed in the last month. For the fiscal year, analysts are expecting earnings of $15.13 per share.
IBM is expected to report revenue of $25.38 billion for the quarter, down by 3% from last year's figure of $26.16 billion. The anticipated revenue for the fiscal year is $105.32 billion.
Company Performance: In the second quarter, IBM broke a three-quarter growth streak with a year-over-year decline in revenue. After rising 0.3%in the first quarter, 1.6% in the fourth quarter of the last fiscal year and 7.8% in the third quarter of the last fiscal year, it fell 3.3% in the most recent quarter.
IBM is in line with the industry average with a P/E ratio of 15.2. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Understanding The P/E Ratio
Over the past quarter, the stock price has increased from $186.01 on July 13, 2012 to $205.82. IBM's best recent streak was when its price gained $4.67 per share between September 6, 2012 and September 12, 2012.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Earnings: Quality Means Everything
What to Expect: IBM is expected to report $3.61 per share, up 10.1% from a year ago when the company reported earnings of $3.28 per share.
The consensus estimate is down from $3.62 three months ago, but it hasn't changed in the last month. For the fiscal year, analysts are expecting earnings of $15.13 per share.
IBM is expected to report revenue of $25.38 billion for the quarter, down by 3% from last year's figure of $26.16 billion. The anticipated revenue for the fiscal year is $105.32 billion.
Company Performance: In the second quarter, IBM broke a three-quarter growth streak with a year-over-year decline in revenue. After rising 0.3%in the first quarter, 1.6% in the fourth quarter of the last fiscal year and 7.8% in the third quarter of the last fiscal year, it fell 3.3% in the most recent quarter.
IBM is in line with the industry average with a P/E ratio of 15.2. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Understanding The P/E Ratio
Over the past quarter, the stock price has increased from $186.01 on July 13, 2012 to $205.82. IBM's best recent streak was when its price gained $4.67 per share between September 6, 2012 and September 12, 2012.
by
Investopedia Staff
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