Information technology mainstay IBM reports fourth-quarter results late Wednesday just as IBM stock is showing renewed strength.
Wall Street sees the venerable tech giant reporting adjusted earnings of $3.59 a share, up 7% from the $3.35 reported in the year-ago period. IBM stock analysts expect revenue of $16.4 billion, down 2% from $16.7 billion.
The December-period results come after IBM beat third-quarter expectations and boosted its full-year revenue outlook. Further, shares surged in December, hitting levels not seen since June 2021, after being in a downtrend for years.
The company divided into four segments after the 2021 Kyndryl Holdings spinoff. The segments are software, consulting, infrastructure and financing, with products used in artificial intelligence, data-center applications and business automation.
IBM Stock: A Massive Reorganization
Over the past decade, IBM has invested more than $120 billion in remaking the company. This includes $29 billion in capital expenditures for things like scaling its cloud operations and artificial-intelligence offerings, while bolstering its security and services capabilities.
IBM also has prioritized what it calls an open, hybrid cloud platform. That means IBM can provide its customers with both a public cloud and a private cloud.
The company has also focused on artificial-intelligence technology. Also, consulting and information technology infrastructure remain a core element of business operations.
Shares of IBM were down 1.4%, near 139.55, during morning trading on the stock market today.
IBM stock has an IBD Composite Rating of 66 out of a best-possible 99. In addition, it has a Relative Strength Rating of 73.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
