IBM (IBM) is scheduled to report results of its fiscal third quarter after the market close on October 19, with a conference call scheduled for 5:00 pm ET. What to watch for:

GUIDANCE: Along with its last report, IBM guided for Q3 revenue in the high single-digit range. At the time, analysts were expecting the company to report Q3 revenue of $14.27B, but that figure has since dropped to $13.51B. In addition, IBM in its last report reiterated its FY22 revenue growth guidance at the high end of its mid-single-digit model. At the time, analysts were expecting the company to report FY22 revenue of $60.89B, but that figure has since fallen to $59.82B.

BOFA PT CUT: Yesterday, BofA analyst Wamsi Mohan lowered the firm's price target on IBM to $145 from $155 and kept a Buy rating on the shares ahead of the quarterly report. He has cut his revenue estimate for Q3 to reflect incremental foreign exchange headwinds and made a larger cut for Q4 on an incrementally worse headwind, Mohan told investors. However, Mohan highlighted IBM's "relative resilience," estimating that about 80% of the software portfolio is non-transactional contracts linked to mission-critical projects.

STIFEL PT CUT: Also earlier this week, Stifel analyst David Grossman lowered the firm's price target on IBM to $140 from $150 and maintained a Buy rating on the shares. IBM is defensive and likely impacted less than most large-cap tech, but not immune to slowing GDP growth, said Grossman, who also estimates 2023 foreign exchange headwinds have increased 210 basis points since the Q2 report and is not reflected in consensus. To reflect fundamental and cyclical factors, the analyst forecasts 1%-2% constant currency revenue growth in 2023, while consensus is at about 4% "using old f/x assumption, and EPS of $9.52, versus consensus at $9.87.

HUDSON VALLEY INVESTMENT: Earlier this month, U.S. President Joe Biden and IBM chairman and CEO Arvind Krishna toured the company's Poughkeepsie, New York site to see firsthand "where the future of computing is being innovated, designed and manufactured," the company said. During the visit, IBM announced a plan to invest $20B across the Hudson Valley region over the next 10 years. The goal of the investments, which will occur alongside close collaboration with New York State, is to expand the technology ecosystem in New York to unlock new discoveries and opportunities in semiconductors, computers, hybrid cloud, artificial intelligence, and quantum computers, according to IBM. "IBM is deeply honored to host President Biden at our Poughkeepsie site today and we look forward to highlighting our commitments to the innovations that advance America's economy," Arvind Krishna, Chairman, and CEO of IBM, said. "As we tackle large-scale technological challenges in climate, energy, transportation and more, we must continue to invest in innovation and discovery - because advanced technologies are key to solving these problems and driving economic prosperity, including better jobs, for millions of Americans."

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