Lower Tax Rate Saved IBM (IBM) From Horrible 'Miss' - BMO

April 19, 2013 8:05 AM EDT
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Price: $166.71 -0.05%

Rating Summary:
    10 Buy, 21 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 22 | Down: 34 | New: 34
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BMO Capital reiterated a Market Perform rating on IBM (NYSE: IBM) following Q1 results.

Analyst Keith Bachman comments that while IBM indicated that deals slippage was caused by execution issues, they are not so sure noting that Oracle, Accenture, and now IBM have all posted weak Qs and guidance. "We think demand was perhaps weaker than we and the companies thought," he said.

If not for the lower tax rate, IBM would have have missed consensus EPS by $0.34, the analyst notes.

The firm cut 2014 EPS estimate from $18.50 to $18.00, primarily by reducing revenue estimate from $107.5 billion to $103.6 billion.

For an analyst ratings summary and ratings history on IBM click here. For more ratings news on IBM click here.

Shares of IBM closed at $207.15 yesterday.

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