HP Earnings Preview: Analysts See Strong PC Sales But Still Not Impressed

Eanings for the quarter are expected to come in at $0.88 per share, just 1.15 percent higher than the same quarter last year. However, HP beats EPS estimates almost every quarter.

Revenue is projected to be $27.42 billion for the quarter, a 3.31 percent year over year drop.

Credit Suisse

Credit Suisse sees revenue of $27 billion generating $0.87 per share of EPS for the quarter. Analyst Kulbinder Garcha writes, “While the company has achieved stability and improved the cost structure, anemic IT spending and long-term structural issues are likely to keep a lid on earnings power.”

Related: Will Hewlett-Packard Suprise This Earnings Season?

Kulbinder also sees strong PC sales helping the top line. According to Gartner, PC sales are up 2.1 percent year over year.

Credit Suisse currently has a neutral rating on the company with a $30 price target.

Mizuho

Abhey Lamba of Mizuho expects revenue to be inline, but sees upside potential on EPS, with it ranging from $0.88 to $0.90.

Like Credit Suisse, Mizuho sees strength in the company’s PC business: “HP’s results will benefit from continued strength in commercial PCs, which would help on the pricing front as well. The strength in commercial PCs will likely offset continued weakness in consumers. However, expectations for the PC performance seem to have taken into account the improving conditions in the PC segment.”

Lamba also has a neutral rating and $30 price target on HP.

Shares of HP are up 1.45 percent Thursday to $32.99.