(Photo Credit: ChrisDag)
After today’s closing bell, IBM will report its earnings for the fiscal quarter ending September 2015. Wall Street is predicting FQ3’15 EPS to come in at $3.33, having underestimated EPS every quarter 6 of the last 8 quarters. The Estimize consensus is set slightly higher, projecting an EPS of $3.38
Investors are expecting to see revenues fall harshly for IBM, amounting to nearly a 12.3% decline quarter-over-quarter for the technology giant. The company has been in a tight spot in recent years seeing its hardware revenue fall quarter after quarter. In an attempt to remedy this, IBM has sold its commodity server business, sold its semiconductor chip business, and divested its System X business. Looking forward, the company hopes to put its bets on its strategy business in hopes of offsetting its falling revenues. IBM’s Strategic Imperatives segment, consisting of Cloud Business, Business Analytics, and Mobile Security, only accounts for for a small segment of its total revenue, and therefore has a long way to go before it can fully rely on it as a revenue driver.
IBM has also been hit hard by changes in the global economy. Foreign exchange headwinds and a stronger US dollar will likely result in decreased revenues, with the top line taking a 9% hit in the previous quarter.
A look into the company’s stock chart tells a similar story. Year-to-date (YTD), the stock has declined 6.26%. Since the company’s third quarter earnings report last year, the stock has almost entirely traded underneath its 200 day moving average. IBM typically experiences high volume trading days from the day before until the day after it reports, and this Monday should be no different.
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IBM data by YCharts
Make sure to get any last estimates in here.
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