IBM posted stronger-than-expected third quarter earnings. Revenues, too, beat expectations.
The software company’s adjusted earnings came in at $1.81 per share for the three months ending in September, topping the Street forecasts by around 3 cents per share.
Revenues rose +6% from the year-ago quarter to $14.1 billion, exceeding the Street consensus forecast of $13.5 billion. Revenues from the software segment climbed +7.5% to $5.8 billion. While Consulting revenues grew +5.4% to $4.7 billion. Revenues from Red Hat (the cloud computing firm that IBM acquired for $34 billion in 2019) increased +12%.
Looking ahead, IBM anticipates a stronger U.S. dollar will erode around 7% of the group's full year earnings. However, the company b still expects to beat its previous forecast of "mid-single-digit growth" on a constant currency basis.
IBM moved above its 50-day moving average on May 17, 2023 date and that indicates a change from a downward trend to an upward trend. In of 39 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 17, 2023. You may want to consider a long position or call options on IBM as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for IBM just turned positive on May 15, 2023. Looking at past instances where IBM's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for IBM crossed bullishly above the 50-day moving average on May 25, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IBM advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 250 cases where IBM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IBM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
IBM broke above its upper Bollinger Band on June 02, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.565) is normal, around the industry mean (3.984). P/E Ratio (59.172) is within average values for comparable stocks, (47.072). Projected Growth (PEG Ratio) (2.199) is also within normal values, averaging (1.495). Dividend Yield (0.050) settles around the average of (0.034) among similar stocks. P/S Ratio (1.999) is also within normal values, averaging (2.731).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. IBM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of various computer products through the use of advanced information technology
A.I.dvisor indicates that over the last year, IBM has been loosely correlated with ACN. These tickers have moved in lockstep 52% of the time. This A.I.-generated data suggests there is some statistical probability that if IBM jumps, then ACN could also see price increases.
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|CDW - IBM|
|GIB - IBM|
|CTSH - IBM|
|SAIC - IBM|