International Business Machines Corp. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component International Business Machines Corp. (NYSE:IBM) will unveil its latest earnings on Tuesday, April 17, 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 $2.63 per share, a rise of 13.9% 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 $2.66. Between one and three months ago, the average estimate moved down. It has risen from $2.62 during the last month. For the year, analysts are projecting profit of $14.86 per share, a rise of 11.1% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 9 cents, reporting net income of $4.71 per share against a mean estimate of profit of $4.62 per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 0.7% in revenue from the year-earlier quarter to $24.77 billion.

Analyst Ratings: 11 out of 21 analysts surveyed (52.4%) have a buy rating on International Business Machines. This falls under the mean analyst rating of 10 competitors, which average 59.9% buy ratings.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 4.4% to $5.49 billion ($4.58 a share) from $5.26 billion ($4.14 a share) the year earlier, exceeding analyst expectations. Revenue rose 1.6% to $29.49 billion from $29.02 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 8.2% in the second quarter of the last fiscal year and 7% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.7% in the first quarter of the last fiscal year, 12.4% in the second quarter of the last fiscal year and 7.8% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between January 13, 2012 and April 11, 2012, the stock price rose $24.11 (13.5%), from $178.47 to $202.58. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 16, 2012, when shares rose for nine straight days, increasing 4.4% (+$8.75) 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, dropping 6.2% (-$11.65) over that span.

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

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