IBM Corp. (IBM) has reported solid first quarter 2010 earnings results after the bell Monday. Its $1.97 per share on net revenues reaching $2.6 billion posted year-over-year gains of 16% and 13%, respectively.
The results topped the Zacks Consensus EPS Estimate by 3 cents per share, keeping with IBM’s recent modest positive surprises over the past few quarters, which have averaged under 5%. Analyst revision activity on IBM for the past month has been slight: only one analyst had upwardly revised his or her estimate for the quarter (up a penny from 30 days ago), and two analysts have helped tweak full-year 2010 estimates up from $11.05 to $11.06 in the past month.
That said, the market seemed quite positive ahead of the report, with IBM shares having gained 1.6% by the closing bell. But almost immediately upon the report’s release, those gains have been given back, and then some. Currently, the stock is down 1.8% (and still falling) on the highest trading volume IBM stock has seen in a month.
Like tech heavyweights Intel Corp. (INTC) and Google Inc. (GOOG) last week, IBM was able to capitalize on overall strength in the tech industry. But, as in Google’s case, even IBM’s earnings beat wasn’t enough to impress Wall Street after hours.
Note: Look for our fully rounded blog analysis tomorrow before the opening bell.
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