In a note released Friday, Wells Fargo analyst Maynard Um described his expectations for International Business Machines Corp. IBM third-quarter results.
Looking to revenue, Um believes there is slight downside to the consensus of $23.4 billion and is predicting $23.2 billion. However, he sees the company's EPS coming in inline with the consensus of $4.33.
In a glance ahead, Um says a potential server divestiture gain should allow IBM to beat its fiscal 2014 EPS guidance of at least $18. Additionally, he expects the company to reaffirm its fiscal 2015 EPS guidance of at least $20.
As for what Um is looking for in terms of IBM's business, he commented, "We will be looking for evidence in a bottoming of the company's legacy businesses (amidst the backdrop of what appears to be an increasingly tougher macro backdrop) and growth/traction of its new businesses."
Um has maintained his Market Perform rating and valuation range of $185-$195.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.