IBM Stock: What To Expect When It Reports Third-Quarter Earnings

Information technology mainstay IBM (IBM) reports fourth-quarter results late Wednesday just as IBM stock is showing renewed strength.

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Wall Street sees the venerable tech giant reporting adjusted earnings of $3.59 a share, up 7% from the $3.35 reported in the year-ago period. IBM stock analysts expect revenue of $16.4 billion, down 2% from $16.7 billion.

The December-period results come after IBM beat third-quarter expectations and boosted its full-year revenue outlook. Further, shares surged in December, hitting levels not seen since June 2021, after being in a downtrend for years.

The company divided into four segments after the 2021 Kyndryl Holdings (KD) spinoff. The segments are software, consulting, infrastructure and financing, with products used in artificial intelligence, data-center applications and business automation.

IBM Stock: A Massive Reorganization

Over the past decade, IBM has invested more than $120 billion in remaking the company. This includes $29 billion in capital expenditures for things like scaling its cloud operations and artificial-intelligence offerings, while bolstering its security and services capabilities.

IBM also has prioritized what it calls an open, hybrid cloud platform. That means IBM can provide its customers with both a public cloud and a private cloud.

The company has also focused on artificial-intelligence technology. Also, consulting and information technology infrastructure remain a core element of business operations.

Shares of IBM dipped 0.3%, closing at 141.49 on the stock market today.

IBM stock has an IBD Composite Rating of 66 out of a best-possible 99. In addition, it has a Relative Strength Rating of 73.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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