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Your Two Minute Earnings Preview to IBM Stock

Eric Dutram

Today’s video takes a closer look at International Business Machines (IBM) ahead of their earnings report. The company has been trying to execute a turnaround strategy with mixed success, putting extra pressure on the coming report to set the record straight.

In one respect, it appears as though IBM stock has more than bottomed-out and the company is back on the path of growth. Plus, with a great near term history in earnings season, IBM has clearly developed the ability to manage expectations in earnings season, a quality that is always helpful.

However, there are some questions for IBM too. The company has a terrible industry rank, while it has a ‘D’ for its VGM score. IBM has also just fallen into ‘sell’ territory, while its earnings estimate picture isn’t great, as we can see in the chart below.

INTL BUS MACH Price, Consensus and EPS Surprise

INTL BUS MACH Price, Consensus and EPS Surprise | INTL BUS MACH Quote

Clearly, IBM has had difficulty in turning its new strategy into better earnings, even though the stock price has moved higher. This makes this a key report, and one where IBM might have to prove its mettle if it seeks to go even higher from these levels.

IBM reports on October 17th after the bell, and we are looking for earnings of $3.21/share. Make sure to watch the video for a quick guide to IBM heading into the report, but if you want to learn more about trading in earnings season, check out our podcast below:


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