IBM earnings Q1 2020


Wired senior staff writer Cade Metz and Arvind Krishna, then senior vice president and director at IBM Research, speak onstage at the Wired Business Conference in New York on June 16, 2016.

Brian Ach | Wired | Getty Images

IBM will issue its first-quarter earnings report after market close on Monday.

Analysts surveyed by Refinitiv are expecting $1.80 in earnings per share, adjusted, on $17.62 billion in revenue for the first quarter. For the full year, analysts are looking for $11.73 in earnings per share on an adjusted basis, according to Refinitiv. Comparing IBM’s results against analysts’ estimates will not be straightforward, though, given that the coronavirus continued to impact economies around the world in the quarter.

Earlier this month, Arvind Krishna, who has been at IBM since 1990, took the reins of the company as CEO, replacing Ginni Rometty. Krishna, who has previously been in charge of cloud at IBM, suggested in an interview with CNBC as he began his new role that Covid-19 could accelerate customers’ adoption of cloud services.

In the quarter IBM announced a 10-year services deal with Banco Sabadell of Spain that includes a hybrid-cloud component.

David Holt, an analyst at CFRA Research, lowered his price target on IBM stock to $144 from $165 in a note distributed to clients on Monday.

“At current levels, we think shares have adequately discounted future Covid-19 setbacks, especially when you consider the lackluster revenue base IBM is starting with,” wrote Holt, who kept his buy rating on IBM stock. “Oddly enough, the current backdrop could work in IBM’s favor, as we think the company could see a smaller downside revision than most under our coverage, making it easier for fundamentals to exceed current expectations, especially with the healthy degree of fear currently embedded in the market.” 

IBM shares are down about 9% since the start of the year.

This is breaking news. Please check back for updates.

WATCH: CNBC’s full interview with new IBM CEO Arvind Krishna


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