IBM Corp To Announce Earnings On October 19

The software company is all set to announce its earnings on October 19, which will determine the sentiments investors should be having towards the stock of the company

International Business Machine Corporation has witnessed some important highs in the recent times, in which the giant has experienced a rise in the stock price coming around at 5 percent, which has also been appreciated by analysts who are covering the stock of the company. Despite the increase, it was also seen that the shares of the tech giant observed a lower than 6 percent share values on a year to year basis. In the quarter before the current one, the revenue that was collected by the giant came around to be at a drop of 32 percent in the hardware department, whereas the software sales also dropped which brought a downfall to the revenue by 10 percent, another alarming figure to be taken into consideration by the giant.

Analysts who are looking at the IBM stock closely are talking about how the shareholders will be able to know what the stock holds for them once the earnings are released on October 19. Keeping in mind the kind of sales it has recently been making the industry, most of the equity analysts are expected to downgrade the giant’s stock for the earnings call. However, for analysts who choose to focus on the dividend yield that is offered by the management of the company at around 3.5 percent, are sure to upgrade the stock of the firm in the near future.

The CEO of IBM, Ginni Remetty, has spoken to the press on a lot of occasions and has expressed how the slow shift of the company from old school computers to the new technology is what has made the firm a little backward in the tech industry. In the same manner, rival Microsoft has also gone through the same efforts of trying to keep up with the fast moving changes in the industry, which has been on the giant’s expense for a really long time.

The tech and software giant, however, is not thought to be working up to Microsoft’s level so far as it has still not grasped the massive changes being made in the cloud computing business. However, the giant has still been growing in terms of its data storage network. According to its previous quarter, the growth has come out to be at 20 percent, which is being considered by the analysts to be more than what Microsoft has achieved, even though it is supposedly on top of the cloud and tech business when it comes to production of PCs.