Wall Street is looking for earnings of $3.62 a share from Big Blue on revenue of $25.38 billion. Jefferies, which has a hold rating and a $225 price target on the stock, is in line with the consensus view.
"We believe IBM had a strong quarter from software along with System x and System z servers," the firm said. "We estimate that the Services business saw an okay quarter relative to its peers given a tough macro environment. We believe IBM's cloud products are becoming more prominent and will see growth in storage."
With its stock up nearly 14% in 2012 and a streak of eight upside surprises on the line, IBM investors are no doubt expecting a bit more.As for Intel, expectations are down since the no. 1 chip maker's warning in early September. The average estimate of analysts polled by Thomson Reuters is for a profit of 49 cents a share in the quarter on revenue of $13.23 billion. In an earnings preview for the semiconductor companies, BMO Capital said even the expectations for fourth-quarter guidance are probably below the published numbers for the group. Here's the firm take on Intel: "
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