IBM Q1 Earnings Preview: Analysts Expect In-Line Results, Focus on AI and Consulting
International Business Machines (IBM) will report its first-quarter results on Wednesday, April 24th, after the market closes. Analysts predict earnings per share of $1.59 on revenues of $14.54 billion, representing a 1.7% increase from the previous year.
Despite concerns about potential weakness in its consulting business following Accenture’s lower revenue guidance, IBM is anticipated to report first-quarter results that align with expectations. Investors will pay close attention to the company’s AI business, as enterprises increasingly rely on AI tools to boost productivity. The sale of Weather Company assets in February is also expected to contribute to IBM’s top and bottom lines.
Analysts expect IBM to provide second-quarter guidance in line with expectations and reiterate its full-year guidance. Evercore analysts note that while there are concerns about the consulting business, recent macro and IT spending data have shown improvement, indicating continued momentum for Consulting.
Over the past three months, IBM has witnessed a significant number of estimate revisions, with six upward revisions to earnings per share estimates versus one downward revision. Revenue estimates have seen one upward revision compared to five downgrades. Seeking Alpha analysts collectively rate IBM as a Buy, in line with the average Wall Street rating and SA Quant rating of Hold.
