Hewlett-Packard Company (HPQ) Q4 Earnings Preview

0

Hewlett-Packard Company (NYSE:HPQ) is set to report its fourth quarter results on Tuesday, November 26 after the market closes. The Palo Alto-based company will also hold a conference call at 5:00 PM ET. Hewlett-Packard Company (NYSE:HPQ) has been aggressively cutting costs in order to weather declining global PC sales. CEO Meg Whitman, who is leading Hewlett-Packard Company (NYSE:HPQ)’s five year turnaround plan, has been pretty optimistic. Recently, she said that FY14, which started in November, will be a year of expansion and growth.

Hewlett-Packard to be affected by soft IT environment

IT spending has been very weak amid soft federal spending and slowing growth in China and other emerging markets. Last year, Hewlett-Packard Company (NYSE:HPQ) lost $6.85 billion, or $3.49 a share, on revenues of $29.96 billion in the same quarter. It earned $1.16 a share excluding one-time charges.

Q2 Hedge Funds Resource Page Now LIVE!!! Lives, Conferences, Slides And More [UPDATED 7/12]

Q2 Hedge Funds Resource PageSimply click the menu below to perform sorting functions. This page was just created on 7/1/2020 we will be updating it on a very frequent basis over the next three months (usually at LEAST daily), please come back or bookmark the page. As always we REALLY really appreciate legal letters and tips on hedge funds Read More


For the latest quarter, Cantor Fitzgerald analyst Brian A. White expects the company to report $28 billion in revenues and $1 in EPS. Analysts polled by FactSet project HP’s fourth quarter revenues to come at $27.86 billion with $1 in earnings. Cantor Fitzgerald’s revenue projection indicates 3% QoQ growth. Large IT companies including International Business Machines Corp. (NYSE:IBM) and Cisco Systems Inc. (NASDAQ:CSCO) are going through a tough earnings season. They have widely missed the consensus revenue estimates due to poor demand. Brian A. White expects Hewlett-Packard Company (NYSE:HPQ), too, to be affected by soft IT environment.

Most units of Hewlett-Packard on track to report growth

However, Cantor Fitzgerald is optimistic about Hewlett-Packard Company (NYSE:HPQ)’s performance in certain areas. It expects the company’s software business, which accounted for 4% of its sales in Q3, to grow 15% in August-October quarter. Hewlett-Packard Company (NYSE:HPQ)’s imaging and printing business should grow 8% during the quarter. It accounted for 21% of the company’s third quarter revenues. Its enterprise business, which made up 25% of Q3 sales, should grow 4%. The personal systems division is expected to show a modest growth of 2% in Q4. It accounted for 28% of Hewlett-Packard Company (NYSE:HPQ)’s revenues during the third quarter. One soft corner for the company will be its enterprise services unit, where sales may decline 5% in August-October quarter. It accounted for 21% of HP’s revenues in Q3.

Cantor Fitzgerald has a Neutral rating on the stock with $20 price target. Hewlett-Packard Company (NYSE:HPQ) shares were up 0.18% to $25.31 at 12:29 PM EST.