IBM (IBM) Q1 'Very Disappointing', Not Good Sign for Hewlett-Packard (HPQ)

April 19, 2013 11:02 AM EDT
Get Alerts IBM Hot Sheet
Price: $166.81 +0.01%

Rating Summary:
    10 Buy, 21 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
Trade IBM Now!
Join SI Premium – FREE
Yesterday tech darling IBM (NYSE: IBM) reported Q1 results, and they weren't good. IBM missed consensus on both the top and the bottom line, leading analyst Bill Shope of Goldman Sachs to described the quarter as "very disappointing."

"Despite IBM's miss, we continue to believe the counter-cyclical components of IBM's business will still make it a relative outperformer," said Goldman.

In Shope's view, IBM results put other technology names at risk, including Hewlett-Packard (NYSE: HPQ).

"IBM's hardware results also suggest we could see incremental revenue and earnings pressure for all of our enterprise-exposed names, and we reiterate our Cautious sector view. Specifically, IBM's results add to our concerns over Sell-rated Hewlett-Packard's revenue and earnings trajectory this year, particularly since HP faces more severe secular challenges and added pressures in PCs and printing," warned the analyst.

Goldman Sachs maintained a Buy rating on IBM but lowered its price target of $220.00 (from $233.00).

For an analyst ratings summary and ratings history on IBM (NYSE: IBM) click here. For more ratings news on IBM click here.

Shares of IBM closed at $207.15 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS View, Analyst PT Change

Related Entities

Goldman Sachs, Earnings

Add Your Comment