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International Business Machines Corp. (IBM) reports Q4 2020 results after Thursday’s U.S. closing bell, with analysts expecting a profit of $2.05 per-share on $20.57 billion in revenue. If met, earnings-per-share (EPS) will mark a troubling 56% profit decline, compared to the same quarter in 2019. The stock fell 6.5% in October after meeting modest top and bottom line estimates, consistent with the company’s long-term status as a market laggard.
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IBM Acquisition Binge Ahead of Spin-Off
However, bullish stars are aligning for strong price action that could catch analysts and traders off-guard. In October, IBM announced the spin-off of its Managed Infrastructure Services (MIS) business into a publicly-traded entity, in a transaction expected to close at the end of 2021. In addition, the company has been on an acquisition binge since the last report, scooping up cloud and fintech firms TruQua Enterprises, Instana, Expertus Technologie