Buy the Dip on IBM Stock
Shares of International Business Machines (NYSE: IBM) slumped on Thursday after the tech giant reported first-quarter results that fell a bit short of expectations. Revenue of $14.46 billion missed the consensus estimate by $80 million, while adjusted earnings per share of $1.68 was $0.09 below expectations.
For the most part, though, IBM's first quarter went well. Overall revenue was up 3% in constant currency, free cash flow jumped significantly to $1.9 billion, and profit margins expanded. Software revenue rose 6%, driven by Red Hat and artificial intelligence, and the infrastructure segment managed to grow despite being two years into the current mainframe product cycle.
The weak point in IBM's first quarter was the consulting business. While consulting revenue still rose by 2% year over year at constant currency, IBM is seeing more pressure related to discretionary projects. Clients are less willing to spend on smaller, less critical projects in an uncertain economic environment.
Source Fool.com
International Business Machines Corp Stock
With 34 Buy predictions and 1 Sell predictions International Business Machines Corp is one of the favorites of our community.
As a result the target price of 180 € shows a slightly positive potential of 6.86% compared to the current price of 168.44 € for International Business Machines Corp.
