Analysts Estimate IBM (IBM) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - IBM is expected to report a year-over-year decline in earnings due to lower revenues, with the consensus outlook indicating a challenging earnings picture for the company [1][3]. Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $1.42 per share, reflecting a decline of 15.5% year-over-year, and revenues are projected to be $14.43 billion, down 0.2% from the previous year [3]. - The consensus EPS estimate has been revised 0.48% lower in the last 30 days, indicating a bearish sentiment among analysts regarding IBM's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for IBM is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.11%, suggesting a challenging outlook for an earnings beat [10][11]. - Historically, IBM has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +5.09% in the last reported quarter [12][13]. Stock Movement Potential - The stock may experience upward movement if the earnings report exceeds expectations, while a miss could lead to a decline [2]. - The predictive power of the Earnings ESP is significant for positive readings, especially when combined with a strong Zacks Rank, but IBM currently holds a Zacks Rank of 3, making it difficult to predict a beat [8][11]. Conclusion - Overall, IBM does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors before making investment decisions related to the stock [16].