Earnings Preview: Hewlett Packard Co. (HPQ)

Hewlett Packard Co. HPQ is currently lower on the session by 1.62%, trading at $40.69. The company is scheduled to report earnings today, after the closing bell. • Estimates The Street is looking for Q3 earnings per share of $1.08 on revenue of $30.43 billion. These estimates have been raised by $0.01 over the past 90 days. The Whisper number for HPQ is $1.08. • Guidance The Street is looking for Q4 EPS of $1.26 on revenue of $32.65 billion. The full year 2010 estimates are $4.50 per share on revenue of $124.94 billion; FY 2011 is at $4.98 per share on revenues of $131.03 billion. • Technical Picture HPQ has been running lower for the better part of six months and is trading in a severe downtrend; in fact, the chart is quite ugly. Recently, the stock crated as the company’s CEO was ousted, dropping the stock to $40.00, from $47.50, in a little over two days. • Volatility Both historical volatility and implied volatility have been down-trending over the past three months after a spike higher in mid-May, though are elevated as of late. Currently HI is at 30% and IV is at 32%. The front month $41.00 straddle is trading at 52.40%; the September $41.00 straddle is trading at 32.50% Hewlett-Packard Company is a global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors.