Exploring Analyst Estimates for IBM (IBM) Q1 Earnings, Beyond Revenue and EPS

Core Viewpoint - Analysts forecast IBM will report quarterly earnings of $1.42 per share, reflecting a year-over-year decline of 15.5%, with revenues expected to be $14.43 billion, a decrease of 0.2% compared to the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 0.5%, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenue- Global financing' at $183.01 million, down 5.2% year-over-year [5]. - 'Revenue- Consulting' is projected to be $5.10 billion, reflecting a decline of 1.7% from the prior year [5]. - 'Revenue- Infrastructure' is expected to reach $2.84 billion, indicating a year-over-year decrease of 7.6% [5]. - 'Revenue- Software' is anticipated at $6.27 billion, showing an increase of 6.2% from the previous year [6]. - 'Revenue- Other' is estimated at $78.46 million, down 27.4% year-over-year [6]. - 'Revenue- Infrastructure Support' is projected to be $1.22 billion, reflecting a decline of 6.2% [6]. - 'Revenue- Hybrid Infrastructure' is expected to be $1.67 billion, down 7.2% from the prior year [7]. - 'Revenue- Application Operations' is projected at $1.89 billion, indicating a slight decrease of 0.7% [7]. - 'Revenue- Technology Consulting' is expected to reach $907.57 million, reflecting a year-over-year increase of 0.8% [7]. - 'Revenue- Business Transformation' is estimated at $2.33 billion, showing a year-over-year increase of 1.3% [8]. - 'Revenue- Hybrid Platform & Solutions' is projected at $4.37 billion, indicating a 6.6% increase from the previous year [8]. - 'Revenue- Transaction Processing' is expected to reach $1.88 billion, reflecting a 4.4% increase year-over-year [8]. Stock Performance - Over the past month, IBM shares have recorded a return of -5.4%, compared to the Zacks S&P 500 composite's -6.3% change [8].