IBM (IBM) Q4 Preview: Bottom-Line Continues to Grow, But Top-Line Struggles

January 22, 2013 3:50 PM EST
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IBM (NYSE: IBM) is up 0.4% ahead of earnings after the close.

On average analysts are looking for EPS of $5.25 on revenues of $29.1 billion, which would represent growth of 11.5% and -1.4%, respectively.

Over the past four quarters, IBM has beat EPS estimates 3 times and was in-line once, according to EPS Insider. The average beat-rate is +2.4%. However, the average move one week after earnings is -1.3%.

Commenting on the upcoming quarter recently, top-rated IBM analyst Chris Whitmore at Deutsche Bank noted: "We expect IBM to report in-line revenue and modest EPS upside (DB at revs/ EPS of $29.6B/ $5.28). We expect solid results in HW, mixed SW results and in-line Services. We believe healthy new mainframe sales will offset mixed SW results due to continued longer sales cycles, fiscal cliff issues etc. We also expect margins to be supported by cost cutting / global delivery initiatives. We expect IBM to guide to 10% EPS growth in FY13"

IBM normally posts results a few minutes after 4PMET and will be hosting its conference call at 4:30 PM ET. You can listen in here.

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