Click here to close now.


IBM Cloud Authors: Liz McMillan, Greg O'Connor, Don MacVittie, Kevin Benedict, Ken Simpson

News Feed Item

The Zacks Analyst Blog Highlights: IBM, General Motors, Ford Motor, Nissan Motor and Toyota Motor

CHICAGO, Jan. 23, 2013 /PRNewswire/ -- announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include IBM (NYSE:IBM), General Motors Company (NYSE:GM), Ford Motor Co. (NYSE:F), Nissan Motor Co. (OTC:NSANY) and Toyota Motor Corp. (NYSE:TM).


Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Tuesday's Analyst Blog:

IBM Finally Beats On the Top

IBM (NYSE:IBM) finally broke a multi-quarter slump in the top line with fourth-quarter revenue of $29.3 billion, which surpassed the Zacks Consensus Estimate of $29.18 billion. Non-GAAP earnings per share of $5.39 improved 14% from last year and beat the Zacks Consensus Estimate by about 2.7%.

For a while now, IBM's revenue and EPS have been going in different directions, with the former slumping slightly while the latter was able to eke out gains. The top line weakness was attributed to slowing IT spending, which had a big impact on the entire tech sector given IBM's status as a bellwether.

Today's quarterly performance by no means signals a rollicking industry for the fourth quarter, but it does suggest some improvement. It could also be a big benefit to earnings season in general, which didn't inspire much confidence to begin with and hasn't been that encouraging so far.

Revenue was still down 1% year over year, though was flat when adjusting for currency. It was up 1% excluding divested RSS business adjusting for currency. Meanwhile, IBM's earnings surprise may be small, but it gets the company back into the green after only matching in the third quarter. Before then, the company had a very impressive record of consecutive EPS surprises.

For the full year, non-GAAP earnings per share of $15.25 was up 13% and ahead of the Zacks Consensus Estimate at $15.09. Revenue was down 2% at $104.5 billion.

For 2013, IBM expects non-GAAP earnings per share of at least $16.70, compared to our estimate of $16.58.

At the moment, IBM is stuck at a Zacks Rank #4 (Sell). Out of 22 total estimates, there have been no upward revisions in the past 60 days, but there have been 5 to the downside. We'll have to wait and see if today's quarterly report will be enough to lift the Zacks Rank.

We have always believed that IBM had a good long-term picture, due to its key growth initiatives, strong product pipeline, expansion in emerging markets and continuous acquisitions. The short-term, though, was a question mark. Perhaps this quarter will get it moving in the right direction again.

IBM is certainly moving in the right direction after hours, with shares up approximately 3% at this writing.

GM to Invest $1.5B in North American Plants

General Motors Company (NYSE:GM) revealed that it will pump in $1.5 billion in its North American facilities in 2013 as part of its $8 billion annual investment plan for its global operations for new vehicle development.

GM has invested $10.2 billion in its North American facilities since 2009. In May 2011, the company had also initiated an investment plan of $2 billion, targeting 17 assembly and components plants in 8 states for 18 months in the U.S. The program, intended to create or preserve more than 4,000 hourly and salaried jobs at the plants, has been completed.

Recently, GM also mentioned that it would be able to save thousands of dollars in costs per car in the production of next generation Volt by adopting a more efficient design. The new design will help the company use smaller vehicle components and save weight. However, the company did not reveal the launch date of the plug-in hybrid car.

Recently, at an industry conference in Detroit, GM stated that it expects modest growth in global auto sales in 2013 as improvements in China and the U.S. will be offset by sluggish car sales in Europe. The automaker predicted a 5% rise in industry sales in the U.S. and international market each and European market to shrink 4% in the year.

The company foresees pricing pressures to exist, particularly in China and Europe. However, it expects that moderate market share gain across the world, driven by new vehicle launches will boost its profit margins. GM plans to upgrade 70% of its global lineups by the end of this year.

In North America, GM aims to boost market share and increase vehicle pricing. The company expects to enhance profit margins in the region to 10% in the next three or four years from 8% currently. Meanwhile, the company has targeted break-even results in Europe by 2015. In China, GM intends to improve margins by continuing investing in Cadillac and rolling out its OnStar communications, in-car safety system.

Many automakers started focusing on electric powered vehicles as President Barack Obama's administration set a goal of achieving 1 million battery-powered vehicles on the road by 2015.

In August 2012, Ford Motor Co. (NYSE:F) announced its plan to invest $135 million to develop key components, including advanced battery systems, for its next-generation hybrid-electric vehicles. The automaker is looking forward to doubling its battery-testing capabilities to 160 individual battery-test channels by 2013. It aims to boost development of hybrid-electric vehicles by at least 25%.

Recently, Nissan Motor Co. (OTC:NSANY) announced that it has started the production of all-electric 2013 LEAF at its Smyrna, TN plant. The new LEAF will be produced together with the company's gasoline-powered products in the plant. The automaker also opened its largest lithium-ion automotive battery plant in Smyrna, which is adjacent to the LEAF assembly facility. The plant will address the company's goal of making zero-emissions mobility around the world.

Last year, Toyota Motor Corp. (NYSE:TM) had revealed plans to unveil 21 gas-electric hybrid models by 2015, most of them having a similarity with its widely acclaimed Prius. As many as 14 vehicles among these hybrids will be all new.

This apart, Toyota plans to launch a fuel cell vehicle, which runs on hydrogen to produce electricity, by 2015. However, Toyota will launch eQ (iQ EV in the U.S.) in limited numbers due to a conservative view on the global hybrid vehicles market.

GM, a Zacks Rank #3 (Hold) stock, posted a 9.7% fall in earnings to 93 cents per share (excluding special items) in the third quarter of the year from $1.03 in the corresponding quarter a year ago. However, earnings per share in the quarter far exceeded the Zacks Consensus Estimate of 61 cents.

Revenues in the quarter grew 2.5% to $37.6 billion, surpassing the Zacks Consensus Estimate of $36.3 billion. Worldwide sales volume inched up 1.6% to 2.3 million units from 2.2 million units a year ago. However, total market share declined to 11.6% from 12.1% in the third quarter of 2011.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter:

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...