Earnings and Growth Analysis : International Business Machines (NYSE:IBM)

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Earnings results for International Business Machines (NYSE:IBM)

International Business Machines Corporation is expected* to report earnings on 10/19/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 6 analysts’ forecasts, the consensus EPS forecast for the quarter is $2.55. The reported EPS for the same quarter last year was $2.68.

International Business Machines last announced its earnings results on July 20th, 2020. The technology company reported $2.18 EPS for the quarter, topping the consensus estimate of $2.14 by $0.04. The company had revenue of $18.12 billion for the quarter, compared to the consensus estimate of $17.72 billion. Its revenue for the quarter was down 5.4% on a year-over-year basis. International Business Machines has generated $12.81 earnings per share over the last year and currently has a price-to-earnings ratio of 14.3. International Business Machines has confirmed that its next quarterly earnings report will be published on Monday, October 19th, 2020.

Analyst Opinion on International Business Machines (NYSE:IBM)

16 Wall Street analysts have issued ratings and price targets for International Business Machines in the last 12 months. Their average twelve-month price target is $139.87, predicting that the stock has a possible upside of 11.07%. The high price target for IBM is $155.00 and the low price target for IBM is $120.00. There are currently 10 hold ratings and 6 buy ratings for the stock, resulting in a consensus rating of “Hold.”

International Business Machines has received a consensus rating of Hold. The company’s average rating score is 2.38, and is based on 6 buy ratings, 10 hold ratings, and no sell ratings. According to analysts’ consensus price target of $139.87, International Business Machines has a forecasted upside of 11.1% from its current price of $125.93. International Business Machines has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: International Business Machines (NYSE:IBM)

International Business Machines is a leading dividend payer. It pays a dividend yield of 5.18%, putting its dividend yield in the top 25% of dividend-paying stocks. International Business Machines has been increasing its dividend for 20 years. The dividend payout ratio of International Business Machines is 50.90%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, International Business Machines will have a dividend payout ratio of 53.97% next year. This indicates that International Business Machines will be able to sustain or increase its dividend.

Insiders buying/selling: International Business Machines (NYSE:IBM)

In the past three months, International Business Machines insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $303,339.00 in company stock. Only 0.24% of the stock of International Business Machines is held by insiders. 56.11% of the stock of International Business Machines is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of International Business Machines (NYSE:IBM

Earnings for International Business Machines are expected to grow by 9.22% in the coming year, from $11.06 to $12.08 per share. The P/E ratio of International Business Machines is 14.29, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 19.73. The P/E ratio of International Business Machines is 14.29, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 66.00. International Business Machines has a PEG Ratio of 3.51. PEG Ratios above 1 indicate that a company could be overvalued. International Business Machines has a P/B Ratio of 5.32. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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