Analysts at Goldman Sachs Equity Research projected that the earnings per share (EPS) of Hewlett-Packard Company (NYSE:HPQ) will be generally in-line with the consensus estimate of Wall Street analysts for the second quarter of 2013. They expect the company to post $0.80 EPS and projected that its revenue might be lower-than-expected because of strong competition and weak demand in PC’s and enterprise hardware.

Hewlett-Packard Company (HPQ) Q2 Earnings Preview

Goldman Sachs Group, Inc. (NYSE:GS) analyst Bill Shoppe and his fellow analysts covering Hewlett-Packard Company (NYSE:HPQ) said that the company’s key end markets are facing incremental pressures. According to them, the full year consensus for the company is too optimistic.

The analysts maintained their full year 2013 EPS estimates for Hewlett-Packard Company (NYSE:HPQ) at $3.26, significantly lower than the $3.49 consensus estimate. They believe that signs of incremental pressures confronting the company will start to show during its earnings call for the second quarter and guidance for the July quarter.

For the July quarter, Goldman Sachs analysts estimated that Hewlett-Packard Company (NYSE:HPQ) will deliver $28.01 billion revenue and $0.76 EPS compared with the consensus estimate of $27.78 billion revenue and $0.83 EPS.

In a note to investors, Shoppe and his colleagues wrote, “We remain Sell-rated on Hewlett-Packard and maintain our 12-month target price of $16. As we have noted in the past, bulls generally tend to counter our cautious view with the idea that HP can harvest its current restructuring savings and delay its investment needs to hit short-term targets despite its broad secular challenges.”

The analysts also believe that Hewlett-Packard Company (NYSE:HPQ) has less room to maneuver contrary to the perception of most investors because of the increasing pressure on the key business segments of the company.

Furthermore, the analysts said, “Overall, HP’s reinvestment needs remain high after years of restructuring and could pressure profits and require more aggressive M&A beyond FY 2013.

On the other hand, ISI Group analyst, Brian Marshall maintained his neutral rating for the shares of Hewlett-Packard Company (NYSE:HPQ). He believed that “significant weakness in the PC market, margin pressure in servers, and loss of contracts” will affect the earnings performance and outlook of the company.

Based on data from FactSet, analysts projected that Hewlett-Packard Company (NYSE:HPQ) will report $0.81 earnings per share from $28.02 billion revenue. During the same period last year, the company posted $0.98 earnings per share on $30.69 billion revenue.

The stock price of Hewlett-Packard Company (NYSE:HPQ) is up by more than 1 percent to $21.43 per share on Wednesday around 1:23 PM in New York.