HP Earnings Preview

HP HPQ announces its next round of earnings this Thursday, August 26. Here is Benzinga's everything-that-matters guide for this Thursday's Q3 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

HP EPS will likely be near $0.84 while revenue will be around $15.91 billion, according to analysts. In the same quarter last year, HP reported EPS of $0.49 on revenue of $14.29 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Thursday, earnings would be up 71.43%. Sales would be up 11.31% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Over the last 52-week period, shares are up 55.94%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. HP is scheduled to hold the call at 16:30:00 ET and can be accessed here.