IBM Q4 results: shares jump 5% after earnings revenue beats estimates

IBM stock rises in US after hours trading after beating Wall Street estimates.

International Business Machines(IBM) stock is up in US stock market after hours trading after beating Wall Street estimates in its fourth quarter(Q4) earnings report. IBM earnings were better-than -expected in its Q4 profit report.

IBM earnings: key figures

Earnings per share ( EPS) $4.87
Revenue $21.76 billion
Net income $1.95 billion
Global business services $4.32 billion
Global finances $401 million

IBM earnings

IBM earnings per share were $4.87, more than the $4.82 expected from financial analysts. IBM revenue also exceeded expectations, with $21.76 billion, surpassing the $21.71 billion Wall Street expected. The company’s acquisition of open source technology company Red Hat undoubtedly helped improve IBM profits.

'In 2018 we returned to full-year revenue growth, reflecting growing demand for our services and leadership solutions in hybrid cloud, AI, analytics and security. Major clients worldwide, such as BNP Paribas, are turning to the IBM Cloud and our unmatched industry expertise to transform their businesses and drive innovation,' said chief executive officer (CEO), Ginni Rometty, in a statement.

Key Banc Capital Markets analyst, Arvind Ramnani, said that Red Hat helps IBM rvenue, but there are concerns among investors about the $34 billion deal in the long term.

‘The deal propels IBM as a leading cloud provider and significantly improves its competitive positioning relative to Amazon, Microsoft and Google .... However, based on conversations we have had with investors, the concern has been around the ability for the combined entity to retain Red Hat employees and that IBM may have overpaid at 32x EV/FCF (CY19) for the assets despite the acquisition's transformational potential,’ said Ramnani.

What do IBM Q4 results mean for their share price?

IBM share price should increase after the positive Q4 earnings report. IBM's Q4 earnings should mean that IBM share price will rise from $122.

How do IBM's results compare to other tech stocks?

IBM's results are better than Apple's Q1 guidance before its earnings report. IBM's results are a good sign of possibly positive tech earnings reports later this month.

What is the IBM dividend forecast?

IBM is optimistic about its dividend forecast for Q1. IBM's dividend forecast is $4.82 for its earnings per share. The corporation is also projecting revenue of $21.73 billion. IBM's dividend revenue also includes a projection of free cash flow of $12 billion.

Financial analysts are also bullish on the tech company after IBM's revenue report.

‘We believe the ongoing growth of the Strategic Imperatives unit will return IBM to organic growth in 2019 despite ... currency headwinds,’ Nomura Instinet analysts led by,Jeffrey Kvaal, noted in an e-mail.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

European Central Bank meeting

Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement on 24 October 2019.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.