IBM's revenue has declined 9 of the last ten quarters
IBM is planning to publish its earnings report on Monday, July 19. In the past four quarters, IBM has been beating the estimates for its EPS; however, in revenue, it was not as good as its EPS, missed the expectations, and has declined 9 of the last ten quarters.
After two years of decline in a row at 2017 and 18, 2019, the company could start recovering with its new plans and new services, however, as all market's 2020 hit by coronavirus crises. In 2020, IBM could recover 50% of its loss of February and March, later in December, and in 2021 also with almost 17% growth, it could touch the pre-pandemic level, above $150.
In the first quarter, the company could beat both expectations of EPS and Revenue, respectively, at $1.77 (decreased 4% year-over-year) and 17.7B (increased 1% year-over-year). Also, in the first quart of 2021, the company had 955M earnings.
"IBM's Q2 2021 earnings per share is expected to be $2.34 per Trefis analysis, just above the consensus estimate of $2.29. The company's net income margin fell in 2020 due to the pandemic. The removal of lockdowns and steady growth in the vaccination rate have contributed to a revival in demand across sectors. Altogether, the company is likely to report an EPS of around $12.66 in FY2021." (Forbs)
Also, TipRanks' estimate for IBM EPS and Revenue is $2.25 and $18.29 billion. And the Earnings Whisper number, or the Street's unofficial view on earnings, stands at $2.34 per share.
From the technical point of view, the Daily chart telling us that asset is floating around 100 weekly average. As we can see in the chart, it is a critical level that has been tested many times before as well, crossing above 100 weekly at $142, technically can put the stock on a solid buy position.
Down in the H1 chart, asset moves in a clear uptrend, and a favorable report can send the stock price above $146 level, as it's fire resistance. On the flip side, July 6, low at $137, is the fir support, and the negative report will push the asset price under this level.
