Earnings Preview: IBM Reports Q4 Results Wednesday

Jan.17.12 | About: International Business (IBM)

International Business Machines (NYSE:IBM) is scheduled to release last fiscal quarter's results after the closing bell on January 19, 2012.

International Business Machines Corporation provides information technology [IT] products and services worldwide. The company was founded in 1910 and is based in Armonk, New York. IBM trades an average of 4.9 million shares per day.

52 Week High: $194.90
52 Week Low: $151.71
Book Value: $18.91
Float Short: 1.25%

Analysts are expecting an improvement of $1.34 in earnings per share compared to last quarter's results of $3.28. The reporting quarter's estimated mean earnings are $4.62 per share.Analyst estimates range between $4.57 and $4.72 per share.

The current trailing twelve months P/E ratio is 14.2. The forward P/E ratio is 12.3.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $99.87 billion for 2010 vs. $95.76 billion for 2009. The bottom line has rising earnings year-over-year of $14.83 billion for 2010 vs. $13.43 billion for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $19.31 billion for 2010 vs. $18.19 billion for 2009.Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue.

paid2trade.com revenue gross bar chart for IBM Click to enlargeGross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 26.26 B $ 26.16 B $ -99.30 M -0.38%
Jun-11 $ 25.35 B $ 26.67 B $ 1.32 B 5.21%
Mar-11 $ 24.00 B $ 24.61 B $ 607.10 M 2.53%
Dec-10 $ 28.26 B $ 29.02 B $ 757.30 M 2.68%
Sep-10 $ 24.13 B $ 24.27 B $ 140.80 M 0.58%
Click to enlarge

M = millions, B = billions

Differences are rounded. (Some onetime items are often excluded in reported EPS)

paid2trade.com Quarterly Estimates And Actual EPS results IBM Click to enlargeReported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for IBM

paid2trade.com short interest tool. The total short interest number of shares for IBM Click to enlargeThe number of days to cover short interest based on average daily trading volume for IBM.

paid2trade.com number of days to cover short interest based on average daily trading volume for IBM Click to enlargeThank you for reading my article. Please also feel free to share your thoughts and comments.

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.

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