International Business Machines (NYSE: IBM) is expected to report Q2 earnings on July 18. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict IBM's revenues will wither -1.2% and EPS will improve 11.3%.

The average estimate for revenue is $26.35 billion. On the bottom line, the average EPS estimate is $3.44.

Revenue details
Last quarter, International Business Machines logged revenue of $24.67 billion. GAAP reported sales were 0.3% higher than the prior-year quarter's $24.61 billion.

My

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $2.78. GAAP EPS of $2.61 for Q1 were 13% higher than the prior-year quarter's $2.31 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 45.1%, 100 basis points better than the prior-year quarter. Operating margin was 16.4%, 70 basis points better than the prior-year quarter. Net margin was 12.4%, 80 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $107.79 billion. The average EPS estimate is $15.05.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,165 members out of 4,586 rating the stock outperform, and 422 members rating it underperform. Among 994 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 929 give International Business Machines a green thumbs-up, and 65 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on International Business Machines is outperform, with an average price target of $203.24.

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