In its upcoming report, HP (HPQ) is predicted by Wall Street analysts to post quarterly earnings of $0.77 per share, reflecting an increase of 4.1% compared to the same period last year. Revenues are forecasted to be $14.06 billion, representing a year-over-year increase of 4.1%.
Over the last 30 days, there has been a downward revision of 1.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of 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.
In light of this perspective, let's dive into the average estimates of certain HP metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts forecast 'Net revenue- Personal Systems- Commercial PS' to reach $7.19 billion. The estimate suggests a change of +8.2% year over year.
It is projected by analysts that the 'Net revenue- Personal Systems- Consumer PS' will reach $2.91 billion. The estimate points to a change of +12.8% from the year-ago quarter.
The average prediction of analysts places 'Net revenue- Personal Systems' at $10.10 billion. The estimate indicates a year-over-year change of +9.5%.
Analysts predict that the 'Net revenue- Printing- Supplies' will reach $2.73 billion. The estimate points to a change of -3.3% from the year-ago quarter.
Analysts' assessment points toward 'Net revenue- Printing- Commercial Printing' reaching $1.13 billion. The estimate indicates a change of -1.1% from the prior-year quarter.
According to the collective judgment of analysts, 'Net revenue- Printing- Consumer Printing' should come in at $290.46 million. The estimate indicates a change of -2.9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Net revenue- Printing' will likely reach $4.16 billion. The estimate indicates a year-over-year change of -2.7%.
The consensus among analysts is that 'Days in accounts payable' will reach 137 days. The estimate compares to the year-ago value of 139 days.
The consensus estimate for 'Days of sales outstanding in accounts receivable' stands at 31 days. The estimate compares to the year-ago value of 28 days.
Based on the collective assessment of analysts, 'Days of supply in inventory' should arrive at 68 days. The estimate compares to the year-ago value of 72 days.
Analysts expect 'Earnings from operations- Personal Systems' to come in at $554.07 million. Compared to the present estimate, the company reported $507.00 million in the same quarter last year.
The collective assessment of analysts points to an estimated 'Earnings from operations- Printing' of $761.43 million. The estimate is in contrast to the year-ago figure of $810.00 million.
View all Key Company Metrics for HP here>>>
Shares of HP have experienced a change of -6% in the past month compared to the -0.8% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), HPQ is expected to 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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