International Business Machines Corp IBM shares are volatile Thursday morning after the company reported mixed first-quarter financial results. Multiple analysts lowered price targets following the print. IBM also announced a new agreement with Moderna Inc MRNA.
Q1 Earnings: IBM said first-quarter revenue increased 0.4% year-over-year to $14.25 billion, which missed average analyst estimates of $14.35 billion, per Benzinga Pro. Software revenue was up 3% and consulting revenue was up 3%, while infrastructure revenue fell 4%.
The company reported first-quarter earnings of $1.36 per share, beating consensus estimates of $1.26 per share.
IBM said it expects full-year constant currency growth to be in a range of 3% to 5%. The company reiterated that it expects full-year free cash flow of approximately $10.5 billion.
Analyst Assessment:
- Stifel analyst David Grossman maintained IBM with a Buy and lowered the price target from $150 to $140.
- Evercore ISI Group analyst Amit Daryanani maintained IBM with an In Line and lowered the price target from $150 to $140.
- BMO Capital analyst Keith Bachman maintained IBM with a Market Perform and lowered the price target from $155 to $145.
Related Link: IBM Gets Price Target Cuts By Analysts Following Q1 Results
IBM + MRNA: IBM and Moderna announced an agreement to explore quantum computing and artificial intelligence to advance and accelerate mRNA research and science.
"We are excited to partner with IBM to develop novel AI models to advance mRNA science, prepare ourselves for the era of quantum computing, and ready our business for these game-changing technologies," said Stéphane Bancel, CEO of Moderna.
"We are aiming for breakthrough advances with quantum computing, so we are investing now in building a quantum-ready workforce, to be fully prepared to harness the power of this technology."
IBM Price Action: IBM shares initially traded higher on its earnings release before giving up gains in early Thursday trading.
The stock was down 0.02% at $126.30 at the time of publication, according to Benzinga Pro.
Photo: courtesy of IBM.
© 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.
