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Guy Adami: Earnings Suggest IBM Marching to $200

”It was a huge revenue beat – there was nothing bad to say about the quarter,” says trader Guy Adami while parsing through the latest results from IBM.

That’s Adami’s gut reaction to quarterly results released by Big Blue which beat Street expectations and showed double-digit percent increases for sales of hardware, software and services. Also the company raised full year guidance.

”Some investors may tell you the stock has gone too far too fast but I think the stock is on its way to $200,” Adami says.

Brian Kelly shares Adami's enthusiasm. "If you're already long I'd hold it and on a pullback I'd buy. These are great earnings." Joe Terranova says the same. "Nothing wrong with staying long," he says.

Trader Karen Finerman is on the other side - at least kinda'

”I like IBM,” she concedes “but I’ll probably sell some of my shares at the open. The risk reward has changed. Other technology is starting to look like a better value. IBM at 13 earnings is no longer wildly undervalued.”

By the numbers the tech company reported earnings excluding items rose to $3.03 from $2.61 a share in the year-earlier period.

The company also raised its full-year guidance to $13.25 a share, above analysts' current forecast of $13.22 a share.

Sales for the quarter increased 13 percent to $26.7 billion from $23.7 billion a year ago.

Analysts had expected IBM to report earnings of $3.03 a share on revenue of $25.3 billion, according to Thomson Reuters.

If you’re looking for a downstream trade, Brian Kelly thinks the read through is that corporations are spending on tech. “Maybe look at the XLK,” he says.




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Trader disclosure: On July 18, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm owns (BAC) leaps and Finerman Owns (BAC); Finerman's Firm owns (JPM) leaps and Finerman Owns (JPM); Finerman’s Firm owns (GOOG); Finerman’s Firm owns (IBM); Finerman’s Firm owns (HPQ); Finerman’s Firm owns (CLX); Finerman's Firm And Finerman Own (MSFT); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (SPY); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Terranova owns (XOM); Terranova owns (HAS); Terranova owns (DIS); Terranova owns (WFM); Terranova owns (LULU); Terranova owns (MSFT); Terranova owns (TM); Terranova owns (JWN); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (MA); Terranova owns (BX); Terranova owns (GS); Terranova owns (DAR); Terranova owns (CAT); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (F); Terranova owns (CVI); Terranova owns (IBM); Terranova owns (FCX)

For Brian Kelly
Accounts Managed By Brian Kelly Capital Own (KRE)
Accounts Managed By Brian Kelly Capital Own (MOS)
Accounts Managed By Brian Kelly Capital Own (SLV)
Accounts Managed By Brian Kelly Capital Own (QCOM)
Accounts Managed By Brian Kelly Capital Own (GDXJ)
Accounts Managed By Brian Kelly Capital Own (FCX)
Accounts Managed By Brian Kelly Capital Own (UGA)
Accounts Managed By Brian Kelly Capital Are Short U.S. Dollar

Whitney Tilson
Funds Managed By Whitney Tilson Own (BP)
Funds Managed By Whitney Tilson Owned (BP) On 6/8/10

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of Building Materials Holdings
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LHO)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of Sun Pharmaceutical Industries Ltd
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (RLI)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of Domino's Pizza UK & IRL PLC

For Scott Nations
**No Disclosures

For Chris Whalen
**No Disclosures

For Adam Parker
** No disclosures

For Amelia Bourdeau
**No disclosures


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