Key Highlights:
- IBM exceeds Q1 earnings expectations with a Non-GAAP EPS of $1.60.
- Projected full-year revenue growth of at least 5% amid favorable exchange rates.
- Wall Street analysts offer an average price target of $252.63 for IBM.
IBM's Impressive Q1 Earnings
International Business Machines Corp (IBM, Financial) has announced its financial results for the first quarter, revealing a Non-GAAP EPS of $1.60, surpassing forecasts by $0.17. The tech giant reported a revenue of $14.54 billion, representing a modest year-over-year increase of 0.6% and beating estimates by $150 million. IBM is optimistic about achieving at least 5% revenue growth for the full year, aided slightly by foreign exchange rates. For the second quarter, IBM projects revenues between $16.40 billion and $16.75 billion. The company is maintaining its free cash flow expectation of $13.5 billion for the year, leading to a 5% surge in share price following these announcements.
Wall Street Analysts Forecast for IBM
In a comprehensive analysis by 18 esteemed analysts, the average one-year price target for IBM is $252.63, with a high projection of $320.00 and a low of $160.00. This average target suggests a potential upside of 2.91% from the current trading price of $245.48. For more in-depth projections and estimation details, please visit the IBM Forecast page.
Moreover, insights from 23 brokerage firms indicate that IBM holds an "Outperform" status, with an average rating of 2.4 on a scale where 1 denotes a Strong Buy and 5 signifies a Sell.
Evaluating IBM's GF Value
GuruFocus provides a calculated GF Value for IBM, estimating it at $153.71 for the coming year. This valuation implies a potential downside of 37.38% from the current price of $245.48. The GF Value is determined by taking into account the historical trading multiples of the stock, its past business growth, and forecasts of future performance. For further data and a comprehensive overview, check the IBM Summary page.
