Does The Street Have International Business Machines Figured Out?

International Business Machines (NYS: IBM) is expected to report Q4 earnings on Jan. 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict International Business Machines's revenues will wither -1.2% and EPS will increase 11.5%.

The average estimate for revenue is $29.14 billion. On the bottom line, the average EPS estimate is $5.25.

Revenue details
Last quarter, International Business Machines recorded revenue of $24.75 billion. GAAP reported sales were 5.4% lower than the prior-year quarter's $26.16 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $3.62. GAAP EPS of $3.33 for Q3 were 4.4% higher than the prior-year quarter's $3.19 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 47.4%, 90 basis points better than the prior-year quarter. Operating margin was 20.9%, 70 basis points better than the prior-year quarter. Net margin was 15.5%, 80 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $104.38 billion. The average EPS estimate is $15.13.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,279 members out of 4,714 rating the stock outperform, and 435 members rating it underperform. Among 1,053 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 995 give International Business Machines a green thumbs-up, and 58 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on International Business Machines is outperform, with an average price target of $215.57.

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The article Does The Street Have International Business Machines Figured Out? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends the following options: Long Jan 2014 $90 Calls on International Business Machines., Long Jan 2014 $0 Calls on International Business Machines., Long Jan 2014 $10 Calls on International Business Machines., and Long Jan 2014 $0 Puts on International Business Machines. The Motley Fool owns shares of International Business Machines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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