Earnings Previews for Google and IBM

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By Jon C. Ogg Published
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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.
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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

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