IBM Earnings Prediction
The chart below shows how IBM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, IBM sees a +0.41% change in stock price 10 days leading up to the earnings, and a +1.29% change 10 days following the report. On the earnings day itself, the stock moves by -0.14%. This data can give you a slight idea of what to expect for the next quarter's release.
IBM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
14.97B
1.46%
-5.09%
Gross Margin
54.32%
3.11%
-1.33%
Operating Margin
12.53%
-3.98%
-8.00%
Net Margin
-2.13%
-118.08%
-118.47%
EPS
-0.36
-119.57%
-118.37%
No Data Available
IBM Earnings Analysis
International Business Machines Corporation Corporation (IBM.N) Earnings Conference Call
Positive
Software Revenue Surge: Double-digit revenue growth in software, with a 10% increase including Red Hat at 14%.
Strong Recurring Revenue Growth: Recurring revenue base, which is about 80% of annual software revenue, continues to deliver strong growth.
Hybrid Platform ARR Growth: ARR for hybrid platform and solutions stands at $14.9 billion, up 11% year-over-year.
Revenue Doubling Achievement: Red Hat revenue has grown to approximately $6.5 billion, doubling in size and delivering a mid-teens CAGR.
Free Cash Flow Increase: Generated $6.6 billion of free cash flow, up $1.5 billion year-over-year.
Negative
Infrastructure Revenue Decline: Operating results were mixed, with overall revenue performance showing a decline of 7% in the infrastructure segment, reflecting product cycle dynamics.
Flat Consulting Revenue: Consulting revenue was flat, indicating a challenging macroeconomic environment and lower client spending.
Software Segment Profit Margin: The software segment profit margin was about 30%, which is lower than expected, reflecting ongoing challenges in the market.
Consulting Segment Revenue Outlook: Recurring revenue in the consulting segment is expected to remain flat, which could impact future growth prospects.
Consulting Services Decline: The overall signing rates for consulting services declined for the second consecutive quarter, indicating potential future revenue challenges.
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IBM Earning Call Sentiment
International Business Machines Corporation (IBM) Q3 2024 Earnings Call Transcript
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00:00
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IBM.N
-0.3%Positive
The earnings call summary suggests a positive outlook for IBM. Financial performance shows growth in key areas like software, with Red Hat revenue up 14% and positive operating income growth. The Q&A reveals optimism for future consulting growth, supported by a solid bill-to-book ratio. Despite some challenges in consulting and infrastructure, IBM's strategic partnerships, AI initiatives, and free cash flow guidance bolster confidence. The shareholder return plan remains stable with dividends. Overall, the sentiment is positive, suggesting a stock price increase of 2% to 8% over the next two weeks.