This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

IBM Earnings Preview: What Wall Street's Thinking

Stocks in this article: IBM AAPL AMZN

Cantor Fitzgerald analyst Brian White (Buy, $220 PT)

"After the close this Thursday (7/17), IBM is scheduled to report its 2Q:14 earnings results with a conference call at 4:30 PM ET. In recent quarters, IBM's results have been characterized by revenue misses with lackluster profit performance driven by muted IT spending, weakness in hardware, softening trends in growth markets and other issues. Since the end of 2011, IBM's stock has risen by just 2% compared to a greater than 56% increase for the S&P 500 Index. In our view, either IBM needs to begin demonstrating to investors that the company is turning the corner or we believe a "shake up" at the company could occur."

JPMorgan analyst Tien-tsin Huang (Neutral, $197 PT)

"We expect 2Q hardware revenue to decline in mid twenties, inline with the decline rate in 1Q. We expect steady MIPS and revenue trends in System-z at the bottom of the refresh cycle, while Power systems could continue underperforming at the low end. We also estimate steady low single digit growth in s/w, as full quarter contribution from the Cloudant acquisition should be offset by tough comps. We expect continued mid single digit growth in Key Branded Middleware."

Credit Suisse analyst Kulbinder Garcha (Underperform, $160 PT)

"Our 2Q14 revenue/EPS estimates stand at $24.3bn/$4.33 vs. consensus of $24.1bn/$4.29. We continue to believe that IBM will see declining organic growth due to high mainframe exposure coupled with slower ramp to high value growth in services and software and struggle to achieve 100% FCF conversion. We reiterate our Underperform rating and $160 target price."

--Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs