Shares of tech company IBM (NYSE:IBM) sank in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2024. Earnings per share came in at $1.68, which beat analysts’ consensus estimate of $1.59 per share.
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Sales increased by 1.5% year-over-year, with revenue hitting $14.46 billion. This missed analysts’ expectations of $14.54 billion.
Looking forward, management now expects revenue growth for Fiscal Year 2024 to be in the mid-single-digit range, along with $12 billion in free cash flow.
Is IBM a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on IBM stock based on five Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 52% rally in its share price over the past year, the average IBM price target of $192.58 per share implies 5.25% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
IBM also pays out a quarterly dividend, which yields 3.66%. This is above the tech sector (XLK) average of 1.025%.
Is IBM the Right Stock to Buy for Passive Income?
Before you hurry to invest in IBM, think about the following:
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