IBM
IBM
is scheduled to report earnings after Wednesday’s close. The stock hit a record high near $206/share in 2013 and is currently trading near $137/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $2.12/share on $14.79 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $2.19/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings are expected to grow $9.52 in 2023 which is 4% higher than the $9.13 it earned in 2022. Going forward, the company is expected to earn $9.99 in 2024 which is 5% higher than 2023’s estimate.
A Closer Look At The Technicals
Technically, the stock is under some pressure because it is below its 50 day moving average line and it is 10% below its 52-week high. That said, the bulls are still doing their best to defend the longer term 200 day moving average line which is the next line in the sand. The bulls want to see the stock gap up after reporting earnings and the bears want to see it gap down.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com report.
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