IBM Earnings Report on July 20

IBM Earnings Report on July 20

2021-07-14 • Dikemaskini

What will happen?

International Business Machines, a huge IT company, which provides integrated solutions and services worldwide, will announce its earnings results for the first quarter on July 20 at 00.00 MT. Let’s get ready!

How to trade on earnings?

It’s really easy! Just compare the forecasted earnings with the actual and follow the rule below.

  • If the results are better than expected, IBM will increase its value.
  • Otherwise, if earnings are worse than the forecasts, IBM will fall.

The good news for FBS traders is that they can make both buy and sell trades while trading stocks –the rules are almost the same as for the currency pairs. So, you don’t need to already have an asset to sell it.

Check our earnings calendar

What are fundamental factors?

Not great, but with good potential! IBM has issues with its financial position as short-term assets cover neither short-term nor long-term liabilities. Also, IBM’s debt to equity ratio (260,7%) is considered high. Nevertheless, IBM is undervalued based on the cash flows the company is expected to generate in the future.  

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Source: https://simplywall.st/stocks/us/software/nyse-ibm/international-business-machines?page=1#summary

How has IBM been doing? 

It was doing good! Global digitalization is increasing a positive trend for IBM’s earnings. This trend is expected to continue. The company primarily generates revenues from Cloud & Cognitive Software Segment. During the 2nd quarter of 2021 IBM has signed contracts with Verizon offering their Cloud services to run its 5G networks. Also, the company entered 30 new partnerships in the edge computing market segment, such as Intel, Lumen Technologies, NetApp, etc. These facts indicate a possible increase in IBM's financial performance during the 2nd quarter of 2021.  

Let’s look at the chart!

On the 4-hour chart, IBM located between 145$ and 137$ lines. 145$ trend line, also, is an interception point of 50 and 100-period moving averages, so it seems to be a very strong resistance level. If IBM would break this resistance the goal would be 152$.  

On the other hand, the move down to the 200-period and breaking through it could send IBM price down to 137$ and 132$ support lines. 

IBMH4.png

Besides, you can trade stocks in our app FBS Trader!

Don't know how to trade stocks? Here are some simple steps.

  1. First of all, be sure you’ve downloaded FBS Trader app or Metatrader 5. FBS allows you to trade stocks only through this software.
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