International Business Machines Corp. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component International Business Machines Corp. (NYSE:IBM) will unveil its latest earnings on Monday, July 18, 2011. International Business Machines Corp. 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 profit of $3.01 per share, a rise of 15.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $2.99. For the year, analysts are projecting net income of $13.23 per share, a rise of 14.8% 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 2 cents, reporting profit of $2.31 per share against a mean estimate of net income of $2.29 per share.

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Wall St. Revenue Expectations: On average, analysts predict $25.35 billion in revenue this quarter, a rise of 6.9% from the year ago quarter. Analysts are forecasting total revenue of $105.73 billion for the year, a rise of 5.9% from last year’s revenue of $99.87 billion.

Analyst Ratings: Analysts are bullish on this stock with 14 analysts rating it as a buy, none rating it as a sell and 10 rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 10.1% while it rose 9.2% in the fourth quarter of the last fiscal year and 11.7% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 10.3% to $24.61 billion in first quarter. The figure rose 6.6% in the fourth quarter of the last fiscal year from the year earlier, climbed 3% in the third quarter of the last fiscal year from the year-ago quarter and 2% in the second 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), Accenture plc (NYSE:ACN) and Teradata (NYSE:TDC).

Stock Price Performance: During June 13, 2011 to July 12, 2011, the stock price had risen $10.88 (6.7%) from $163.17 to $174.05. The stock price saw one of its best stretches over the last year between August 9, 2010, and August 16, 2010, when shares rose for six-straight days, rising 3.3% (+$4.17) over that span. It saw one of its worst periods between October 4, 2010, and October 14, 2010, when shares fell for nine-straight days, falling 4.4% (-$6.17) over that span. Shares are up $28.52 (+19.6%) year to date.

(Source: Xignite Financials)

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