Personal computing and printing company HP (NYSE: HPQ) will be announcing earnings results this Wednesday after market hours. Here’s what to look for.
HP beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $13.22 billion, up 3.3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS guidance for next quarter estimates and a significant miss of analysts’ EPS 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 1.8% year on year to $13.76 billion, in line with the 2.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.75 per share.
The majority of analysts covering the company have 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 twice over the last two years.
Looking at HP’s peers in the hardware & infrastructure segment, some have already reported their Q2 results, giving us a hint as to what we can expect. IonQ delivered year-on-year revenue growth of 81.8%, beating analysts’ expectations by 21.5%, and Diebold Nixdorf reported a revenue decline of 2.6%, topping estimates by 3.3%. IonQ traded down 1.7% following the results while Diebold Nixdorf was up 6.6%.
Read our full analysis of IonQ’s results here and Diebold Nixdorf’s results here.
Investors in the hardware & infrastructure segment have had steady hands going into earnings, with share prices flat over the last month. HP is up 6.7% during the same time and is heading into earnings with an average analyst price target of $27.00 (compared to the current share price of $27.58).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
