Earnings Preview: IBM

Technology bellwether IBM (NYSE: IBM) is expected to release its quarterly financial results on Tuesday after the closing bell. Last week, IBM shares were essentially flat heading into the key report. Wall Street analysts have consensus earnings per share estimates of $5.25 for the company. The high estimate on Wall Street is $5.32 with a low estimate of $5.15. The consensus estimate implies year over year earnings growth of roughly 11.46 percent versus the $4.71 per share in earnings IBM reported in last year's corresponding quarter. Revenue in the period is expected to be down 1.30 percent to $29.09 billion compared to year ago sales of $29.49 billion. The high revenue estimate is $29.66 billion with a low estimate of $28.33 billion. Over the last 3 months, EPS estimates for IBM have held steady. Estimates for next quarter have come down by two pennies from $3.05 to $3.03. Overall, earnings are expected to rise 12.60 percent in the current fiscal year while revenue is expected to fall 2.40 percent. During the last 3 months, IBM has risen around 0.57 percent. Over the last 52-weeks, the stock is up around 3 percent. Given the company's large market cap and analysts' fairly tight range of earnings and revenue expectations, the stock probably will not make a huge move after the company reports its quarterly results. The report, however, could influence a wide variety of other technology stocks as IBM is one of the major barometers for the sector as a whole.