IBM Earnings Preview: Revenue, Earnings Expected to Fall from Previous Quarter

Now's the time to start prepping for International Business Machines IBM! Don't be caught off-guard: The company releases its next round of earnings this Monday, July 18, 2011.

Want to know what analysts are expecting to see in IBM's lastest earnings numbers? We thought so. Here's an advanced look at the company's second quarter earnings report.

Let's Do the Numbers:

Analysts are looking ahead to a positive EPS reading of $3.01 per share and revenues of $25.35 billion. We'll know on Monday whether IBM has managed the estimated 116% increase in EPS and 107% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q1	Q4	Q3	Q2
EPS Estimate	$2.29	$4.08	$2.75	$2.58
EPS Actual	$2.31	$4.18	$2.82	$2.61

Stock Performance:

At last check, shares of IBM were trading at $174.05. Shares are up 19.6% year to date. For a full 12 months, the return has risen by 26.7%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for IBM is a Moderate Buy. The strength of this rating has crept upwards over the past three months.

Competitors:

Wondering how IBM compares to rivals in the same sector? Here are a few of the company's peers.

• Apple AAPL: Moderate Buy with a $6.40 recent quarter EPS
• Cisco Systems CSCO: Hold with a $0.37 recent quarter EPS
• Dell DELL: Hold with a $0.55 recent quarter EPS
• EMC EMC: Moderate Buy with a $0.24 recent quarter EPS

IBM is is in the computer systems industry, which has experienced price/earnings growth of 1.4%.

Finally, a description of the main business areas of the company, in case you need a little refresher: IBM creates integrated solutions that leverage information technology and a deep knowledge of business processes for clients.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming IBM earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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