IBM (IBM) Q2 Helped by Low Expectations, PT Raised - BMO Capital
Analyst Keith Bachman comments, "Against very low expectations, IBM delivered top-line results that were about $200 million below our forecast ($25.1 billion), and we think buy side expectations were close to our estimates. We think a lower tax rate helped EPS by about $0.15, so IBM would have missed our EPS by about $0.02."
The firm is increasing EPS estimate for FY13 to $16.91 from $16.65. Lower tax rates add about $0.32 to our estimates, so without the benefit of lower tax rate, our estimates would move slightly lower. They have modestly lowered CY14 EPS to $17.90 from $18.00.
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Shares of IBM closed at $194.55 yesterday, with a 52 week range of $183.20-$215.90.