We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Healthy Consulting Revenues Boost IBM's Q2 Earnings?
Read MoreHide Full Article
International Business Machines Corporation (IBM - Free Report) is scheduled to report second-quarter 2024 results on Jul 24, after the closing bell. The company is expected to have registered higher revenues from the consulting segment, backed by rising demand for technology consulting and business transformation services.
Factors at Play
The Consulting segment comprises Business Transformation, Technology Consulting and Application Operations. It provides consulting and application management services that offer value and innovation to clients by leveraging industry, technology and business strategy, and process know-how.
In the second quarter, IBM inked a Memorandum of Understanding with the Government of Spain to accelerate AI innovations and bolster the national AI strategy. This partnership spans multiple facets of AI, such as AI supercomputing, development and deployment of ethical and responsible generative AI features, as well as the creation of language AI models proficient in Spanish and co-official languages. This will likely to have a favorable impact on net sales in the Consulting segment.
In the quarter under review, Palo Alto Networks collaborated with IBM to improve its security platforms with the latter's AI capabilities in order to deliver AI-powered security solutions. Both companies are collaborating to set up a joint Security Operations Center and a Cyber Range for customer training, with IBM Consulting becoming a preferred Managed Security Services Provider for PANW.
IBM consulting also collaborated with Masters digital team to bring AI-powered personalized and engaging digital experiences to viewers at the 88th Masters tournament. These developments are likely to have driven incremental revenues in the Consulting segment in the second quarter.
In the quarter under review, IBM inked an agreement to acquire SKYARCH NETWORKS, a leader in AWS (Amazon Web Service) focused cloud development and managed services in Japan. The integration of SKYARCH’s expertise in AWS will bolster IBM Consulting’s hybrid cloud service offerings and strengthen its prospects in the region. This will likely get reflected in the upcoming results.
Overall Expectations
The Zacks Consensus Estimate for Consulting revenues is pegged at $5.32 billion, indicating growth from $5 billion in the year-ago quarter. Our estimate for revenues from Consulting is pegged at $5.37 billion, implying 2.8% growth year over year.
The Zacks Consensus Estimate for total revenues for the company stands at $15.58 billion. It generated revenues of $15.48 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $2.16 per share, indicating a decline from $2.18 in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for IBM for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
International Business Machines Corporation Price and EPS Surprise
Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +1.35% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Jul 31.
Image: Bigstock
Will Healthy Consulting Revenues Boost IBM's Q2 Earnings?
International Business Machines Corporation (IBM - Free Report) is scheduled to report second-quarter 2024 results on Jul 24, after the closing bell. The company is expected to have registered higher revenues from the consulting segment, backed by rising demand for technology consulting and business transformation services.
Factors at Play
The Consulting segment comprises Business Transformation, Technology Consulting and Application Operations. It provides consulting and application management services that offer value and innovation to clients by leveraging industry, technology and business strategy, and process know-how.
In the second quarter, IBM inked a Memorandum of Understanding with the Government of Spain to accelerate AI innovations and bolster the national AI strategy. This partnership spans multiple facets of AI, such as AI supercomputing, development and deployment of ethical and responsible generative AI features, as well as the creation of language AI models proficient in Spanish and co-official languages. This will likely to have a favorable impact on net sales in the Consulting segment.
In the quarter under review, Palo Alto Networks collaborated with IBM to improve its security platforms with the latter's AI capabilities in order to deliver AI-powered security solutions. Both companies are collaborating to set up a joint Security Operations Center and a Cyber Range for customer training, with IBM Consulting becoming a preferred Managed Security Services Provider for PANW.
IBM consulting also collaborated with Masters digital team to bring AI-powered personalized and engaging digital experiences to viewers at the 88th Masters tournament. These developments are likely to have driven incremental revenues in the Consulting segment in the second quarter.
In the quarter under review, IBM inked an agreement to acquire SKYARCH NETWORKS, a leader in AWS (Amazon Web Service) focused cloud development and managed services in Japan. The integration of SKYARCH’s expertise in AWS will bolster IBM Consulting’s hybrid cloud service offerings and strengthen its prospects in the region. This will likely get reflected in the upcoming results.
Overall Expectations
The Zacks Consensus Estimate for Consulting revenues is pegged at $5.32 billion, indicating growth from $5 billion in the year-ago quarter. Our estimate for revenues from Consulting is pegged at $5.37 billion, implying 2.8% growth year over year.
The Zacks Consensus Estimate for total revenues for the company stands at $15.58 billion. It generated revenues of $15.48 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $2.16 per share, indicating a decline from $2.18 in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for IBM for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
International Business Machines Corporation Price and EPS Surprise
International Business Machines Corporation price-eps-surprise | International Business Machines Corporation Quote
Zacks Rank: IBM currently has a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
Corning Incorporated (GLW - Free Report) is set to release quarterly numbers on Jul 30. It has an Earnings ESP of +1.59% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +1.35% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Jul 31.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar