In a press release on July 10, 2024, International Business Machines Corporation (NYSE: IBM) announced its quarterly earnings call for Q2 2024 results will be held today, July 24, 2024, at 5:00 p.m. ET, accessible via a live webcast at www.ibm.com/investor.
Market Cap 
$169.16 Billion market cap ranks IBM as the 81st most valuable company globally in July 2024, according to companiesmarketcap.com.
Dividend Information 
IBM offers a 3.63% dividend yield with an annual dividend of $6.68 and a quarterly payout, reflecting a 75.57% payout ratio. With 28 years of growth and a minimal dividend growth of 0.61%, the ex-dividend date was May 9, 2024. Despite a -1.70% buyback yield, the overall shareholder yield stands at 1.93%.
Recent Development At IBM
Here are some of the most recent updates from IBM.
Meta unveils Llama 3.1 models, featuring the much-awaited 405B parameter variant.
IBM launches SkillsBuild Cybersecurity and Data Analytics certificates in community colleges across Alabama, the California Bay Area, Colorado, and Louisiana.
IBM plans to collaborate with Fermilab’s SQMS Center to drive forward essential quantum information science projects.
IBM secures a contract to bolster USAID’s cybersecurity efforts in Europe and Eurasia.
IBM and JLL team up on an ESG reporting and data management solution for commercial properties.
Q1 Earnings Report Recap 
Revenue Performance: Achieved $14.5 billion in total revenue, marking a 1% increase overall and 3% in constant currency, with software revenue rising by 5% (6% in constant currency) while consulting remained stable (up 2% in constant currency). Infrastructure revenue saw a slight decline of 1%, remaining flat in constant currency.
Profit Margins: Improved gross profit margins with GAAP at 53.5% (+80 bps) and Non-GAAP at 54.7% (+100bps). Pre-tax income margin stayed steady at 7.4% (GAAP) and rose to 11.5% (Non-GAAP), up 130 bps.
Cash Flow and Returns: Generated $4.2 billion in net cash from operating activities, up $0.4 billion, with free cash flow reaching $1.9 billion (+$0.6 billion). Over the past year, net cash from operations totaled $14.3 billion and free cash flow $11.8 billion. Diluted EPS was $1.69 (GAAP) and $1.68 (Non-GAAP), supporting continued investment and shareholder returns.
Q2 Earnings Report Analyst Forecast
For the current quarter, Zacks Consensus Estimate for sales stands at $15.58 billion, with a range between $15.44 billion and $15.66 billion, showing a slight year-over-year growth of 0.67% from $15.48 billion. Earnings per share are expected at $2.16, slightly below the recent consensus of $2.17, with estimates ranging from $2.08 to $2.18, reflecting a year-over-year decline of 0.92% from $2.18.
Investing.com reports that International Business Machines Corporation (NYSE: IBM) projects a Q2 EPS of $2.17 and revenue of $15.62 billion.
Tradingview.com reports that IBM (NYSE: IBM) projects Q2 EPS at $2.18 and revenue at $15.62 billion.
Technical Analysis 
– IBM (NYSE: IBM) faces a downtrend line rejection at $188.55.
– If the rejection holds, the price may drop to $182.43, and breaking this level could push it to $178.52.
– Conversely, if the downtrend line rejection fails, the price could rise to $195.70, with a breakout leading to $204.78.
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Conclusion
In summary, IBM’s recent performance highlights a solid track record with Q1 2024 showing a 1% revenue increase and improved profit margins, despite a slight dip in consulting and infrastructure revenue. The company’s strong cash flow and dividend yield underscore its commitment to shareholder returns. Looking ahead, the forecast for Q2 2024 suggests modest revenue growth to around $15.62 billion and an EPS of approximately $2.17. Technically, IBM’s price is currently at a crucial downtrend line resistance, with potential movements ranging from declines to $178.52 or increases towards $204.78. The upcoming Q2 earnings call will provide further insights into whether these projections will align with actual performance.
Sources:
https://newsroom.ibm.com/2024-07-10-IBM-to-Announce-Second-Quarter-2024-Financial-Results
https://www.ibm.com/investor/events/earnings-2q24
https://companiesmarketcap.com/ibm/marketcap/
https://stockanalysis.com/stocks/ibm/dividend/
https://www.ibm.com/blog/meta-releases-llama-3-1-models-405b-parameter-variant/
https://newsroom.ibm.com/2024-04-24-IBM-RELEASES-FIRST-QUARTER-RESULTS?printable=1
https://www.zacks.com/stock/quote/IBM/detailed-earning-estimates
https://www.investing.com/equities/ibm-earnings
