The upcoming report from HP (HPQ) is expected to reveal quarterly earnings of $0.80 per share, indicating a decline of 2.4% compared to the year-ago period. Analysts forecast revenues of $13.43 billion, representing an increase of 4.9% year over year.
Over the last 30 days, there has been an upward revision of 8.7% 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 announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
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.
It is projected by analysts that the 'Net revenue- Personal Systems- Commercial PS' will reach $6.99 billion. The estimate suggests a change of +12% year over year.
The combined assessment of analysts suggests that 'Net revenue- Personal Systems- Consumer PS' will likely reach $2.20 billion. The estimate indicates a year-over-year change of +0.6%.
Analysts' assessment points toward 'Net revenue- Personal Systems' reaching $9.19 billion. The estimate indicates a change of +9% from the prior-year quarter.
According to the collective judgment of analysts, 'Net revenue- Printing- Supplies' should come in at $2.76 billion. The estimate indicates a year-over-year change of -3.8%.
Based on the collective assessment of analysts, 'Net revenue- Printing- Commercial Printing' should arrive at $1.19 billion. The estimate points to a change of -1% from the year-ago quarter.
Analysts predict that the 'Net revenue- Printing- Consumer Printing' will reach $286.82 million. The estimate indicates a change of -4.1% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Net revenue- Printing' of $4.24 billion. The estimate suggests a change of -3% year over year.
The consensus among analysts is that 'Days in accounts payable' will reach 134.00 Days. The estimate compares to the year-ago value of 132 Days.
Analysts expect 'Days of sales outstanding in accounts receivable' to come in at 30.00 Days. The estimate compares to the year-ago value of 31 Days.
The consensus estimate for 'Days of supply in inventory' stands at 73.50 Days. The estimate is in contrast to the year-ago figure of 70 Days.
The average prediction of analysts places 'Earnings from operations- Printing' at $796.32 million. Compared to the current estimate, the company reported $829 million in the same quarter of the previous year.
Analysts forecast 'Earnings from operations- Personal Systems' to reach $528.27 million. Compared to the present estimate, the company reported $508 million in the same quarter last year.
View all Key Company Metrics for HP here>>>
HP shares have witnessed a change of +12.5% in the past month, in contrast to the Zacks S&P 500 composite's +10.7% move. With a Zacks Rank #3 (Hold), HPQ is expected closely follow the overall market performance in the near term. 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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