HP Earnings: What To Look For From HPQ

Personal computing and printing company HP (NYSE:HPQ) will be reporting results tomorrow afternoon. Here’s what to expect.

HP beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $13.5 billion, up 2.4% year on year. It was a slower quarter for the company, with EPS in line with analysts’ estimates.

Is HP a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting HP’s revenue to grow 2.4% year on year to $13.1 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.80 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HP has missed Wall Street’s revenue estimates three times over the last two years.

Looking at HP’s peers in the hardware & infrastructure segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IonQ posted flat year-on-year revenue, beating analysts’ expectations by 0.9%, and Super Micro reported revenues up 19.5%, falling short of estimates by 2.7%. IonQ traded up 9.3% following the results while Super Micro was down 1.2%.

Read our full analysis of IonQ’s results here and Super Micro’s results here.

There has been positive sentiment among investors in the hardware & infrastructure segment, with share prices up 6.2% on average over the last month. HP is up 10.2% during the same time and is heading into earnings with an average analyst price target of $32.42 (compared to the current share price of $27.98).

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