A dire forecast indeed. . .
"Pushing Into The Second Half
Management had guided 'well below' consensus EPS for Q2 and Sacconaghi expects EPS guidance of 'at least' $13.80 for the year to remain unchanged.
'That said, we think IBM's EPS guidance for full year 2017 is aggressive,' said Sacconaghi in a note. It implies a significantly heavier second half, by a proportion greater than any time in the last 20 years.
The analyst doubts contributions from the mainframe cycle can overcome the implied ramping, and would require a boost from a tax event or one-time gain.
For Q3, Sacconaghi estimates $3.25 EPS compared to the Street’s $3.38 and would not be surprised if IBM follows suit.
Investor Advice
'Should [investors] begin to build positions now?' said Sacconaghi. 'Our simple answer: No.'"
https://www.benzinga.com/news/earnings/17/07/9778079/previewing-ibms-q2-earnings-key-questions-remain-for-2h17