IBM (IBM) will report Q4 results tonight after the bell with a conference call scheduled to start at 5:00 p.m. ET. Usually, IBM reports within the first 10 minutes after the bell.

  • As it stands, the current Capital IQ Consensus Estimate calls for Q4 EPS of $4.89 (vs. $4.84 in 2015) and revs of $21.7 bln (-2% Y/Y).
    • IBM has reported revenue down year-over-year eighteen quarters in a row.
  • Last quarter, the co reaffirmed FY 16 expectations for adj. EPS of at least $13.50 (Consensus $13.47 on revs of $79.7 bln)
    • Other Guidance:
      • IBM currently has delivered $6.9 bln in free cash flow through 3 quarters
      • Consensus estimates FY17 EPS of $13.79 on revs -1.4% to $78.9 bln
      • Consensus estimates 1Q17 EPS of $2.49 on revs of $18.6 bln
      • Last quarter, Cloud revs were up 44% with annual run rate for cloud as-a-service revenues up to $7.5 bln from $4.5 bln. 

IBM will guide for FY17 in the press release.

Technicals:

BM stock is currently struggling to get over the 50M and the 200W. If this stock can break free it will provide clear skies above as they've recently broken out of a 4 year downtrend. If not, this stock may have trapped a new batch of fresh longs for a downward retest.