Why IBM Stock Is Trading Higher Thursday
Portfolio Pulse from Adam Eckert
IBM's Q3 financial results exceeded expectations, with revenues of $14.8 billion and EPS of $2.20, against estimates of $14.73 billion and $2.13 respectively. Software revenue increased by 8% YoY and consulting revenue by 6%, while infrastructure revenue decreased by 2%. The company ended the quarter with $11 billion in cash and marketable securities. IBM reiterated its full-year 2023 revenue growth forecast of 3% to 5% and a free cash flow of approximately $10.5 billion. Analysts from Wedbush and BMO Capital maintained their ratings but BMO Capital raised the price target from $152 to $155.
October 26, 2023 | 2:59 pm
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POSITIVE IMPACT
IBM's better-than-expected Q3 results and positive outlook for 2023 could boost investor confidence and potentially drive the stock price up in the short term.
IBM's Q3 results exceeded market expectations, which is generally a positive signal for investors. The company's positive outlook for 2023, including expected revenue growth and strong cash flow, could further boost investor confidence. This combination of positive earnings and future outlook could potentially drive the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100