IBM (IBM) Higher Ahead of Q2 Results

IBM (NYSE: IBM), or Big Blue as it is known, reports second quarter earnings after the close today. Traders are bidding the stock 1.5 percent higher to $129.91 ahead of the highly-anticipated report.

Analysts are looking for IBM to report Q2 EPS of 42.58 and revenues of $24.17 billion.

Since reporting Q1 results on April 19th, shares of IBM are down 1.3 percent versus a 10.5 percent slide in the S&P during that time.

During the quarter, IBM rewarded investors by raising its quarter cash dividend 18 percent to $0.65 per share, giving the stock a healthy 2% dividend yield. Also during the quarter, IBM agreed to buy AT&T Inc.'s (NYSE: T) Sterling Commerce unit for $1.4 billion, marking the company's largest acquisition since buying business software maker Congos in 2008.

Analysts at Deutsche Bank said they expect IBM to report EPS upside while reported revenue could be light due to FX. They said IBM benefited from a good close to the quarter in both software and hardware. They also expect solid Services results due to the ramp of past services wins. The rate the stock a Buy with a $150 price target.

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