Personal computing and printing company HP (NYSE: HPQ) will be reporting earnings this Wednesday after the bell. Here’s what to expect.
HP beat analysts’ revenue expectations last quarter, reporting revenues of $14.41 billion, up 9% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
Is HP a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting HP’s revenue to grow 4.7% year on year, improving from the 3.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. HP has a history of exceeding Wall Street’s expectations.
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. Super Micro delivered year-on-year revenue growth of 93.2%, missing analysts’ expectations by 3.8%, and Xerox reported revenues up 22%, topping estimates by 1.2%. Super Micro traded up 19% following the results while Xerox was also up 11.7%.
Read our full analysis of Super Micro’s results here and Xerox’s results here.
There has been positive sentiment among investors in the hardware & infrastructure segment, with share prices up 4.4% on average over the last month. HP is up 7.6% during the same time and is heading into earnings with an average analyst price target of $23.41 (compared to the current share price of $28.53).
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