https://www.barrons.com/articles/ibm-earnings-stock-price-dividend-4c491abe
By: Tae Kim
Updated July 24, 2024 4:41 pm ET / Original July 24, 2024 2:00 am ET
IBM reported second-quarter earnings results that came in ahead of Wall Street expectations, citing rising customer demand for new AI projects
For the June quarter, the technology company reported earnings of $2.43 a share versus Wall Street’s consensus estimate of $2.18 a share, according to FactSet. Revenue came in at $15.8 billion, which was above analyst expectations of $15.62 billion.
“We had a strong second quarter, exceeding our expectations,”CEO Arvind Krishna said. “We continue to see that clients turn to IBM for our technology and our expertise in enterprise AI.”
Shares rose as much as 3.8% to $191.01 initially following the release.
The company also slightly raised its 2024 full-year free cash flow guidance from “about” $12 billion to “more than” $12 billion.
Last week, Stifel analyst David Grossman reaffirmed his Buy rating and reiterated his $190 price target for IBM stock, citing the company’s robust dividend. The current dividend yield is 3.6%.
“While risk is elevated, given slower-than-expected revenue stabilization, we believe the risk/reward remains attractive,” he wrote. “Catalysts include more consistent software performance and [free cash flow] growth.”
IBM stock is up 32% over the past 12 months, compared with the 23% rise for the Nasdaq Composite.