IT-industry hopes are buzzing that IBM's quarterly results, coming on Monday, April 19, will validate and accelerate the promise triggered last week by Intel's blowout numbers. One analyst who's expecting very big things from IBM believes its numbers will prove that "a resurgence in corporate IT spending" has occurred.From a MarketWatch news article on the great expectations for IBM's numbers, which will be announced Monday afternoon:
Louis Miscioscia, an analyst with Collins Stewart LLC who covers IBM, said in a recent research note that the company should be benefiting from "a resurgence in corporate IT spending," which should only increase in the second half of this year.
Miscioscia estimates that IBM's global services business will grow 5.2% this year, while its software business should see 5% growth, and its hardware business should rise 6.4%. The analyst has a $160 price target for IBM shares.
And another article on IBM's outlook, this one from DailyFinance.com, shows further indications of strong belief that Big Blue's results will be a sign of broad IT-industry strength:
After Intel's (INTC) stellar earnings report earlier this week, Wall Street is expecting a strong performance from Big Blue.
In advance of the filing, options traders have been betting the company's share price will rise. On Wednesday, for example, Reuters reported that options traders exchanged 97,000 call options in IBM, which gives them the option to buy IBM stock at a predetermined price.