For IBM Corp., earnings need to be "nearly-pristine" when Big Blue reports after the close on Wednesday, while Wall Street focuses on free-cash flow.
For International Business Machines Corp., earnings may need to be “nearly pristine” to preserve the stock in a tough environment for companies’ tech-budget decisions.
IBM IBM , which now receives about three-quarters of its revenue from tech services, reports first-quarter earnings Wednesday after the close of markets. In a recent note, Morgan Stanley analyst Erik Woodring said he is leaning “tactically cautious” into the report because of continued uncertainty about IT budgets in 2023.
Read from January: Morgan Stanley reverses IBM upgrade after 9 months as stock outperforms broader market Read: IBM’s ‘substantial’ dividend, debt take wind out of Big Blue’s sails as analyst downgrades stock “Services may be a source of relative strength given backlog dynamics, mainframe remains ‘in-cycle’ and software will likely decelerate given the timing of [Red Hat] renewals and [enterprise licensing agreement] headwinds,” Grossman said.
Over the past year, IBM has warned about currency headwinds because of strength in the dollar, with the U.S. Dollar Index DXY reaching a 52-week high in mid-September. Comparisons should be easier this report given the DXY index is only up 1.8%, compared with 12 months ago.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
McDonald’s tests cold brew and goes big with Big Mac sauceThe fast food giant is tweaking in the way in makes its burgers, including the Big Mac.
Read more »
M&T Bank Corp beats profit estimates as interest income doublesM&T Bank Corp beat Wall Street estimates for first-quarter profit on Monday, as the U.S. Federal Reserve's rapid rate hikes to tame high inflation boosted the lender's interest income.
Read more »
Customer loyalty programs offer big benefits to small-business owners'Our loyalty and rewards program has led to a 90% repurchase rate from loyalty members,' Richa Anand, Lemon Perfect's director of brand marketing, told Insider. Presented by Mailchimp.
Read more »
Perspective | 4 rules for making a video-game adaptation that worksPerspective: The big successes such as “The Super Mario Bros. Movie” and “The Last of Us” — and the big failures — provide lessons for Hollywood to consider
Read more »
Rain comes to Washington, the most all monthAfter days of rain busts, city sees big burst.
Read more »
Midwest LB Sam Pilof picks Rutgers over Big Ten powers Penn State, WisconsinMidwest LB Sam Pilof picks Rutgers over Big Ten powers Penn State and Wisconsin
Read more »