This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IBM to Bang Software Drum for Investors

NEW YORK ( TheStreet) -- IBM (IBM - Get Report) hosts its investor briefing Thursday with the tech giant expected to reiterate its long-term goals, as well as its ambitious efforts to drive software growth.

"We anticipate management to reiterate its 2015 roadmap of at least $20 in EPS and key strategic initiatives including the shift toward higher value and growth areas," wrote Shaw Wu, an analyst at Sterne Agee, in a note released earlier this week. "With HP (HPQ - Get Report), Dell (DELL) and other competitors in transition, we believe IBM is well-positioned to capitalize."

The tech bellwether reported robust fourth-quarter results last month, lifted by strength in its software business. Software, which accounted for more than a quarter of the firm's total revenue, increased 3% year over year (or 4% adjusted for currency) to $7.9 billion.

Set against this backdrop, IBM expects to generate $16 billion in analytics revenue by 2015, a target which could be repeated during the shareholder meeting.

"We anticipate the company to reiterate its key strategies that have proven successful, namely the continued shift toward higher-value areas including software (27% of revenue) and services (51%) and growth initiatives including smarter planet, cloud, and business analytics," wrote Wu.

Smarter Planet, IBM's initiative to sell software and services by driving efficiency in areas such as industry, energy, transportation and government, celebrated its fifth birthday this week. Big Blue also announced this week that Miami-Dade County in Florida is using its research, hardware, software and services to improve operations across 35 municipalities and the city of Miami.

The company's also eyeing new revenue streams from high-end computing. IBM, for example, unveiled the first commercial technologies based on its Watson supercomputer earlier this month, targeting the lucrative health care sector.

Sterne Agee's Wu predicted that hardware will be on the agenda at IBM's investor briefing. "We anticipate the company to provide more color on its recent hardware refreshes, including its Power 7+ and System z high-end servers and PureSystems," he wrote. "We see this driving a multi-year product cycle similar to previous ones where new server sales have helped drive associated software and services."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DELL $0.00 0.00%
HPQ $11.91 -2.90%
IBM $143.88 -1.40%
AAPL $93.85 0.12%
FB $117.61 0.03%


Chart of I:DJI
DOW 17,753.71 -137.45 -0.77%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs