Seeking Alpha

IBM results not impressing sell-side

  • "Disappointing" is the theme as the sell-side comments on IBM's Q4 results from last night.
  • "No near-term relief" is the title of Deutsche's note (and Deutsche is a bull on the stock). The company is likely to remain in the "penalty box" until it can show evidence of stability in hardware and improved execution in emerging markets and China.
  • Investors will likely mull over whether IBM will need to reset the 2015 Roadmap this spring, says JPMorgan, expecting shares to be under pressure near-term and lowering the PT to $175.
  • Credit Suisse reiterates its Sell rating and $160 price target on the weaker-than-expected numbers.
  • Shares -3.2% premarket
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Comments (11)
  • Momintn
    , contributor
    Comments (4283) | Send Message
    IBM continues to try to sell their hardware businesses so I'm not sure why analysts expect anything different there. For years now, they have said they are moving into software and services. When will you listen?
    22 Jan, 08:57 AM Reply Like
  • Momintn
    , contributor
    Comments (4283) | Send Message
    Trading Central closed their short position on 1/17.
    22 Jan, 09:06 AM Reply Like
  • Ryan Schroeder
    , contributor
    Comments (156) | Send Message
    The further the shares go down the easier it will be for IBM to hit their $20 EPS by 2015 goal. Holding now, and will look to add below $150
    22 Jan, 09:07 AM Reply Like
  • naivesummer
    , contributor
    Comments (43) | Send Message
    Why would you want to hold, if you are expecting it to go down? BTW it is a foregone conclusion that IBM will hit $20 by 2015. The question is so what? Why is EPS important? Sure isn't for Netflix, Amazon, JPM, GE etc. Market hardly considers it to be important to the price.
    24 Jan, 04:56 PM Reply Like
  • Owen
    , contributor
    Comments (660) | Send Message
    I don't know about you, but some of us buy a business with the expectation of the business making money.


    If a business I own makes $20 a share profit for me and for the other shareholders, why would I care how much the market values my business? Whether it pays these earnings out in dividends or (preferably) retains them, those earnings are mine. I'm not looking for a buyer.
    24 Jan, 05:16 PM Reply Like
  • Owen
    , contributor
    Comments (660) | Send Message
    Strange market reaction.


    Any idiot can grow a business by selling products at a loss. It takes good management to identify poorly performing business lines and get rid of them. A smaller business with bigger profits--absolute dollar-value bigger, not just % margin--should be good news, no?
    22 Jan, 09:13 AM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9091) | Send Message
    Honestly this seems like an overreaction. Maybe it's time to buy some LEAPs and sit back...
    22 Jan, 09:24 AM Reply Like
  • kato4321
    , contributor
    Comments (52) | Send Message


    I have been strictly a stock investor ( except 4 Polaroid call option trades in 1976--made a killing on the first 3, lost it all on the 4th ) since 1969. Any good articles you can point me to on option strategies? I don't even know how LEAPs really work.
    22 Jan, 10:06 AM Reply Like
  • StreetNinja
    , contributor
    Comments (2) | Send Message
    People who are optimistic and paid by IBM like Momintn should take a look at this analysis and learn something. The results are ominous and IBM is one step away from ruin once Mr Buffett realises his monumental mistake..
    22 Jan, 10:46 AM Reply Like
  • DanoX
    , contributor
    Comments (2708) | Send Message
    The Long Slow Decline Continues.
    22 Jan, 02:53 PM Reply Like
  • Momintn
    , contributor
    Comments (4283) | Send Message
    Buy $IBM now
    22 Jan, 03:55 PM Reply Like
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