BofA Securities analyst Wamsi Mohan provides earnings preview ahead of International Business Machines Corporation IBM second-quarter results release after market close on July 24.
Computing behemoth IBM is slated to report its Q2 2024 results in mid-July, reporting on a quarter that is likely to see the company's sales decline, amid cooling IT spending. We expect revenue to come in at about $14.6 billion, a 6.6% decline compared to the last year, although this would be slightly ahead of the consensus estimates.
IBM (IBM) concluded the recent trading session at $177.64, signifying a +0.92% move from its prior day's close.
IBM (IBM) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
IBM has struggled with growth for over a decade, focusing on share buybacks instead of research and development. The primary business areas for IBM are hybrid and cloud software solutions, consulting, and computing infrastructure. Despite recent growth in the last 3 years, IBM's balance sheet shows high levels of debt and limited room for error.
With declining earnings estimates, IBM is witnessing a negative investor perception and might not be a prudent investment at the moment.
IBM is focusing on cloud services, AI, and consulting for the future, collaborating with Microsoft and expanding its watsonx portfolio. Despite a debt load of $53 billion, the Company's financials are strong, with $20 billion in liquidity and manageable debt obligations. IBM's undervalued stock, strong financial position, and commitment to dividends make it a promising investment in cloud and AI infrastructure.
IBM partners with Microsoft to enhance cybersecurity for clients, focusing on modernizing security operations and protecting hybrid cloud identities.
High-yield dividend stocks have consistently attracted the attention of Wall Street investors. These stocks not only provide a steady income stream but also offer the potential for capital appreciation.
Shares of IBM have been volatile in 2024 following a big rally last year. The company is finding success by focusing on software and services, including artificial intelligence initiatives. We highlight several reasons to stay bullish on the stock.
Zacks.com users have recently been watching IBM (IBM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
IBM (IBM) closed the most recent trading day at $175.01, moving +1.48% from the previous trading session.