NEW YORK (TheStreet) -- Research firm Jefferies reduced its estimates for IBM , due to the continued strengthening of the U.S. dollar against other major currencies. The firm predicted that the company would report lower than expected fourth quarter profits and cut its price target on the stock. WHAT'S NEW: Jefferies analyst James Kisner reduced his Q4 and 2015 profit estimates for IBM by 1.6% and 2.8%, respectively, due to the strengthening of the dollar. IBM also could provide lower than expected 2015 EPS guidance, the analyst added. Kisner expects IBM to report Q4 EPS of $5.27, versus analysts' consensus outlook of $5.46. The company is facing a "difficult transition" over the next several years as companies spend more on newer areas like cloud and mobile and less on IBM's traditional areas of strength, namely software and IT outsourcing, Kisner believes. The analyst cut his price target on the name to $130 from $144 and kept an Underperform rating on the shares. Kisner reiterated his previous assertion, first made last October 31, that many analysts had miscalculated IBM's implied fourth quarter earnings per share guidance. IBM meant to provide a Q4 EPS guidance range with a midpoint of $5.35, but analysts' consensus estimate came in at $5.48, Kisner wrote. WHAT'S NOTABLE: Senior managers at IBM were informed last week that CEO Ginny Rometty is beginning the biggest "global re-org in the history of the corporation," reported U.K. IT website The Register on Friday morning, citing multiple sources. PRICE ACTION: In late morning trading, IBM fell 1.5% to $156.79. Reporting by Larry Ramer.
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