International Business Machines Corp. (
) is higher today, ahead of the company's fourth quarter earnings
release, expected out after the market closes today. Shares are
IBM is expected to report EPS of $4.08 with revs of $28.27 billion.
Shares of the company gained 8.7% through the quarter, to $146.76
at the end of December. The stock is 3.1% since the end of the
quarter, and ended 2010 12.9% better.
Data from Bloomberg has 18 analysts with a Buy on IBM, 9 with a
hold, and none suggesting to Sell. The analyst price target average
is $155.50, with a high of $170 and low of $137.
During their third quarter report, IBM boosted their FY10 EPS
outlook from $11.25 to $11.40. IBM shares also closed 3.36% lower
following their Q310 earnings beat and increased guidance.
J.P. Morgan thinks "Hardware refreshes, increased focus on data
warehousing, and growth recovery in software appear to be factored
in shares of IBM. In our view, valuation may be range-bound in the
near term until the services business can exhibit greater
stability." JPM has an Overweight rating on the shares, which
they've had since October 2008.
Janney is looking for an EPS of $4.05 coupled with revs of $28.29
billion. Janney is expecting a solid report from IBM, led by
Systems & Technology and Software, with a notable showing from
its Services segment.
Specifically, Janney is looking for 9.5% growth in S&T, driven
by servers and storage units. In Software, 5% growth is estimates
driven by "business analytics, storage management, and business
integration with added help coming from acquisitions." Services are
expected to grow at a 2% steady pace.
Janney is pegging 10% growth guidance for FY11, resulting in GAAP
EPS of $12.67, operating margins growing 40 basis points to 19.6%,
and $103.28 billion in revs. Janney has a Buy rating on the stock,
with a fair value of $165 on the shares.
International Business Machines is expected to release their Q410
earnings on Tuesday, January 18, 2011, at approximately 4:00pm EST.
Stay tuned to StreetInsider.com's
section to see our analysis of the highly-anticipated quarterly
results withi0 n seconds of their release.