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Compared to Estimates, IBM (IBM) Q2 Earnings: A Look at Key Metrics
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IBM (IBM - Free Report) reported $15.77 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 1.9%. EPS of $2.43 for the same period compares to $2.18 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $15.58 billion, representing a surprise of +1.23%. The company delivered an EPS surprise of +12.50%, with the consensus EPS estimate being $2.16.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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- Global financing: $169 million versus $181.54 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -8.7% change.
Revenue- Consulting: $5.18 billion compared to the $5.31 billion average estimate based on four analysts. The reported number represents a change of +3.3% year over year.
Revenue- Other: $38 million compared to the $68.09 million average estimate based on four analysts. The reported number represents a change of -25.5% year over year.
Revenue- Infrastructure: $3.65 billion versus the four-analyst average estimate of $3.43 billion. The reported number represents a year-over-year change of +0.8%.
Revenue- Software: $6.74 billion versus $6.58 billion estimated by four analysts on average.
Revenue- Infrastructure Support: $1.30 billion compared to the $1.25 billion average estimate based on two analysts. The reported number represents a change of -7.1% year over year.
Revenue- Hybrid Infrastructure: $2.40 billion versus $2.18 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.4% change.
Revenue- Application Operations: $1.90 billion compared to the $2.02 billion average estimate based on two analysts. The reported number represents a change of +5.6% year over year.
Revenue- Technology Consulting: $900 million versus $952.20 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -10% change.
Revenue- Business Transformation: $2.40 billion compared to the $2.30 billion average estimate based on two analysts. The reported number represents a change of +4.4% year over year.
Revenue- Hybrid Platform & Solutions: $4.60 billion versus the two-analyst average estimate of $4.60 billion. The reported number represents a year-over-year change of -2.1%.
Revenue- Transaction Processing: $2.20 billion compared to the $2 billion average estimate based on two analysts. The reported number represents a change of +15.8% year over year.
Shares of IBM have returned +7.1% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Compared to Estimates, IBM (IBM) Q2 Earnings: A Look at Key Metrics
IBM (IBM - Free Report) reported $15.77 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 1.9%. EPS of $2.43 for the same period compares to $2.18 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $15.58 billion, representing a surprise of +1.23%. The company delivered an EPS surprise of +12.50%, with the consensus EPS estimate being $2.16.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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- Global financing: $169 million versus $181.54 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -8.7% change.
- Revenue- Consulting: $5.18 billion compared to the $5.31 billion average estimate based on four analysts. The reported number represents a change of +3.3% year over year.
- Revenue- Other: $38 million compared to the $68.09 million average estimate based on four analysts. The reported number represents a change of -25.5% year over year.
- Revenue- Infrastructure: $3.65 billion versus the four-analyst average estimate of $3.43 billion. The reported number represents a year-over-year change of +0.8%.
- Revenue- Software: $6.74 billion versus $6.58 billion estimated by four analysts on average.
- Revenue- Infrastructure Support: $1.30 billion compared to the $1.25 billion average estimate based on two analysts. The reported number represents a change of -7.1% year over year.
- Revenue- Hybrid Infrastructure: $2.40 billion versus $2.18 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.4% change.
- Revenue- Application Operations: $1.90 billion compared to the $2.02 billion average estimate based on two analysts. The reported number represents a change of +5.6% year over year.
- Revenue- Technology Consulting: $900 million versus $952.20 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -10% change.
- Revenue- Business Transformation: $2.40 billion compared to the $2.30 billion average estimate based on two analysts. The reported number represents a change of +4.4% year over year.
- Revenue- Hybrid Platform & Solutions: $4.60 billion versus the two-analyst average estimate of $4.60 billion. The reported number represents a year-over-year change of -2.1%.
- Revenue- Transaction Processing: $2.20 billion compared to the $2 billion average estimate based on two analysts. The reported number represents a change of +15.8% year over year.
View all Key Company Metrics for IBM here>>>Shares of IBM have returned +7.1% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.