Earnings Previews for Google and IBM

January 22, 2013 by Jon C. Ogg

Cloud computing
Source: Thinkstock
After the close on Tuesday we will get to see tech-kings like Google Inc. (NASDAQ: GOOG) and International Business Machines Corp. (NYSE: IBM) report their fourth-quarter earnings. For IT-spending, IBM will be watched closely. IBM is also not just a Dow Jones Industrial component. It is THE top DJIA component due to its high share price creating an 11% weighting, which is more than three-times the normal weighting. All Internet investors will be watching to see what search king Google has to say.

Google Inc. (NASDAQ: GOOG) — $10.52 EPS and $12.36 billion in revenue; next quarter estimates are $10.61 EPS and $12.12 billion in revenue.

The first Internet giant is on deck, and the stock remains about 10% off of its highs. Look for this to be the benchmark for online ad marketing dollars for Facebook, Yahoo!, AOL and others. With shares back under $700, the 52-week trading range is $556.52 to $774.38 and the consensus target is almost $800 on the king of Internet search. Extra data as follows:

  • As a reminder, Google revenue is an ex-TAC report rather than a gross revenue.
  • Stock chart is at key 50-day moving average test at $697.58, and the 200-day moving average is lower at $656.68. Google is in a downtrend and shares have been down almost seven days now.
  • Analysts expect a move of up to $29 in either direction.
  • Whispernumber.com is calling for $10.89 EPS.
  • Google offers no guidance.

International Business Machines Corp. (NYSE: IBM) — $5.25 EPS and $ 29.09 billion in revenue; next quarter estimates are $3.30 EPS and $24.72 billion in revenue.

This DJIA component has lagged as a DJIA stock, although the IT-spending market lag that has been seen should start to abate in 2013. The stock is still almost 10% less than its highs, and the $195 price of today compares to a 52-week range of $181.85 to $211.79, and compares to a consensus target of $222.23 on the stock. Extra data as follows:

  • Stock chart at critical point: the 200-day moving average is just above price now at $195.73, and the 50-day moving average is just under price now at $191.84.
  • Options pricing was not active, but best estimate is options traders priced in a move of up to $6 in either direction.
  • Whispernumber.com is calling for $5.35 EPS.
  • Long-term, IBM keeps saying earnings of at least $20 EPS by 2015.
  • IBM services backlog rose to $138 billion last quarter from $136 billion in the prior quarter.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

Posted in Investing | Comments Off on Earnings Previews for Google and IBM