IBM Fourth Quarter Earnings Expectations for Upcoming Release

S&P 500 (NYSE:SPY) component International Business Machines Corp. (NYSE:IBM) will unveil its latest earnings on Thursday, January 19, 2012. IBM creates integrated solutions that leverage information technology and a deep knowledge of business processes for clients.

International Business Machines Corp. Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $4.62 per share, a rise of 10.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $4.63. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 16.1% versus last year to $13.37.

Past Earnings Performance: Last quarter, the company beat estimates by 6 cents, coming in at profit of $3.28 a share versus the estimate of net income of $3.22 a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $29.74 billion in revenue this quarter, a rise of 2.5% from the year ago quarter. Analysts are forecasting total revenue of $107.15 billion for the year, a rise of 7.3% from last year’s revenue of $99.87 billion.

Analyst Ratings: 12 out of 22 analysts surveyed (54.5%) have a buy rating on International Business Machines.. This is below the mean analyst rating of 10 competitors, which average 61.8% buy ratings.

A Look Back: In the third quarter, profit rose 7% to $3.84 billion ($3.19 a share) from $3.59 billion ($2.82 a share) the year earlier, exceeding analyst expectations. Revenue rose 7.8% to $26.16 billion from $24.27 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 8.2% in the second quarter and 10.1% in the first quarter.

Revenue has risen the past four quarters. Revenue rose 12.4% in the second quarter from the year earlier, climbed 7.7% in the first quarter from the year-ago quarter and 6.6% in the fourth quarter of the last fiscal year.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), Hewlett-Packard Company (NYSE:HPQ), Microsoft Corporation (NASDAQ:MSFT), Cisco Systems, Inc. (NASDAQ:CSCO), Intel Corporation (NASDAQ:INTC), Dell Inc. (NASDAQ:DELL), Apple Inc. (NASDAQ:AAPL), EMC Corporation (NYSE:EMC), SAP AG (NYSE:SAP), and Sybase, Inc. (SY).

Stock Price Performance: During November 15, 2011 to January 13, 2012, the stock price had fallen $9.59 (-5.1%) from $188.75 to $179.16. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 20, 2011 when shares rose for eight-straight days, rising 8.3% (+$13.30) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight-straight days, falling 6.2% (-$11.69) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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