The upcoming report from HP (HPQ) is expected to reveal quarterly earnings of $0.92 per share, indicating a decline of 1.1% compared to the year-ago period. Analysts forecast revenues of $15.02 billion, representing an increase of 6.9% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 1.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some HP metrics that are commonly tracked and projected by analysts on Wall Street.
It is projected by analysts that the 'Net revenue- Personal Systems- Commercial PS' will reach $7.34 billion. The estimate suggests a change of +12.5% year over year.
The collective assessment of analysts points to an estimated 'Net revenue- Personal Systems- Consumer PS' of $3.38 billion. The estimate indicates a year-over-year change of +10.1%.
Analysts predict that the 'Net revenue- Personal Systems' will reach $10.72 billion. The estimate points to a change of +11.8% from the year-ago quarter.
According to the collective judgment of analysts, 'Net revenue- Printing- Supplies' should come in at $2.81 billion. The estimate points to a change of -2% from the year-ago quarter.
Based on the collective assessment of analysts, 'Net revenue- Printing- Commercial Printing' should arrive at $1.18 billion. The estimate indicates a year-over-year change of -6.1%.
The consensus estimate for 'Net revenue- Printing- Consumer Printing' stands at $302.61 million. The estimate indicates a year-over-year change of -6.9%.
The combined assessment of analysts suggests that 'Net revenue- Printing' will likely reach $4.29 billion. The estimate indicates a change of -3.5% from the prior-year quarter.
Analysts' assessment points toward 'Days in accounts payable' reaching 137 days. The estimate is in contrast to the year-ago figure of 138 days.
The consensus among analysts is that 'Days of sales outstanding in accounts receivable' will reach 32 days. Compared to the current estimate, the company reported 33 days in the same quarter of the previous year.
Analysts forecast 'Days of supply in inventory' to reach 67 days. Compared to the present estimate, the company reported 63 days in the same quarter last year.
The average prediction of analysts places 'Earnings from operations- Personal Systems' at $632.41 million. Compared to the present estimate, the company reported $550.00 million in the same quarter last year.
Analysts expect 'Earnings from operations- Printing' to come in at $798.79 million. The estimate is in contrast to the year-ago figure of $874.00 million.
View all Key Company Metrics for HP here>>>
Over the past month, shares of HP have returned -18.8% versus the Zacks S&P 500 composite's -0.3% change. Currently, HPQ carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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HP Inc. (HPQ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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