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IBM (IBM) Reports Q2 Earnings: What Key Metrics Have to Say

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IBM (IBM - Free Report) reported $15.48 billion in revenue for the quarter ended June 2023, representing a year-over-year decline of 0.4%. EPS of $2.18 for the same period compares to $2.31 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $15.54 billion, representing a surprise of -0.42%. The company delivered an EPS surprise of +9.00%, with the consensus EPS estimate being $2.00.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how IBM performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- Software: $6.61 billion compared to the $6.34 billion average estimate based on three analysts. The reported number represents a change of +7.2% year over year.
  • Revenue- Global financing: $185 million compared to the $165.05 million average estimate based on three analysts. The reported number represents a change of +26.7% year over year.
  • Revenue- Infrastructure: $3.62 billion versus the three-analyst average estimate of $3.87 billion. The reported number represents a year-over-year change of -14.6%.
  • Revenue- Consulting: $5.01 billion versus the three-analyst average estimate of $4.89 billion. The reported number represents a year-over-year change of +4.2%.
  • Revenue- Other: $51 million versus the three-analyst average estimate of $179.06 million. The reported number represents a year-over-year change of -71.7%.
  • Revenue- Infrastructure Support: $1.40 billion compared to the $1.50 billion average estimate based on two analysts. The reported number represents a change of -6.7% year over year.
  • Revenue- Hybrid Infrastructure: $2.30 billion compared to the $2.45 billion average estimate based on two analysts. The reported number represents a change of -17.9% year over year.
  • Revenue- Application Operations: $1.80 billion versus $1.70 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change.
  • Revenue- Technology Consulting: $1 billion versus the two-analyst average estimate of $912.79 million. The reported number represents a year-over-year change of +11.1%.
  • Revenue- Transaction Processing: $1.90 billion compared to the $1.83 billion average estimate based on two analysts. The reported number represents a change of +5.6% year over year.
  • Revenue- Hybrid Platform & Solutions: $4.70 billion versus the two-analyst average estimate of $4.50 billion. The reported number represents a year-over-year change of +6.8%.
  • Revenue- Business Transformation: $2.30 billion compared to the $2.24 billion average estimate based on two analysts. The reported number represents a change of +4.6% year over year.
View all Key Company Metrics for IBM here>>>

Shares of IBM have returned -0.4% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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