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Earnings Preview: IBM

Among the large corporations reporting quarterly results this week, International Business Machines (IBM) is

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expected to provide investors with a pulse on IT spending during its fourth-quarter-earnings report today after the bell.

The consensus First Call EPS estimate stands at $3.47 compared to last year's gain of $3.28. Could IBM be poised to beat estimates for the 11th consecutive time?

What follows are some facts and figures on how IBM shares traded in the most recent earnings reports.

International Business Machines

  • Beat revenue estimates for 4 of the past 8 quarters

  • Beat EPS estimates for 10 quarters straight

  • Beat annual EPS estimates for 4 of the past 5 years

  • Dollar impact? In 2008, 65% of revenue derived from outside the United States

  • IBM shares are up 2% in 2010, 59% since the March low, and 85% since reaching a "bottom" on 11/20/2008

  • Competitors' Performance in 2010: Infosys Technologies +6%, Accenture +5%, Oracle +4%, Hewlett-Packard 2% and Microsoft 2%

  • IBM shares are currently trading at their highest level since 9/1/2000

  • The company's shares are trading 3% above their 50-day moving average

Stock Performance By The Numbers


  • In the past 8 quarters, IBM shares rose 2.38%, on average, the day after the company reported its quarterly results
  • In 6 of the last 9 earnings reports, IBM shares trended up within 11 days, posting an overall average gain of 1% (MarketHistory.com)

Information Technology Sector:

  • Eighth best performing sector so far in 2010, up 1%
  • Leaders year-to-date: Novell +15%, Compuware +8% and Qualcomm +7%

Earning Estimates Source: CNBC & Thomson Reuters

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