International Business Machines (NYSE: IBM ) is expected to report Q3 earnings on Oct. 16. 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 International Business Machines's revenues will decrease -3.0% and EPS will grow 10.1%.
The average estimate for revenue is $25.37 billion. On the bottom line, the average EPS estimate is $3.61.
Last quarter, International Business Machines reported revenue of $25.78 billion. GAAP reported sales were 3.3% lower than the prior-year quarter's $26.67 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $3.51. GAAP EPS of $3.34 for Q2 were 11% higher than the prior-year quarter's $3.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 47.6%, 120 basis points better than the prior-year quarter. Operating margin was 20.6%, 90 basis points better than the prior-year quarter. Net margin was 15.1%, 140 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $105.35 billion. The average EPS estimate is $15.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,216 members out of 4,644 rating the stock outperform, and 428 members rating it underperform. Among 1,029 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 964 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 $212.86.
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