Technology giant International Business Machines (IBM) will release its Q2 2024 financial results on July 24. Analysts are expecting earnings per share to come in at $2.17, down 0.46% from the year-ago quarter. Meanwhile, analysts expect revenues of $15.62 billion, reflecting a 0.9% year-over-year decrease, according to TipRanks’ data.
In terms of share price growth, IBM’s stock has risen by 38% over the past year. It will be interesting to see if the upcoming Q2 results will sustain this rally in share price.
Insights from TipRanks’ Bulls & Bears Tool
According to TipRanks’ Bulls Say, Bears Say tool, bullish analysts expect revenues to continue rising, driven by growth in consulting, better execution, and increasing momentum for IBM’s enterprise AI and data platform, IBM’s Watsonx. Nevertheless, bearish analysts are worried about the slowdown in the information technology (IT) sector.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 5.60% move in either direction.
What Is the Outlook for IBM Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on six Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. The average IBM stock price target is $187.71, implying a downside potential of 1.93%.
