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TheStreet Open House

Forbes Earnings Preview: Hewlett-Packard

By Narrative Science



Analysts expect decreased profit for Hewlett-Packard (HPQ) when the company reports its second quarter results on Wednesday, May 23, 2012. Although Hewlett-Packard reported profit of $1.24 a year ago, the consensus estimate calls for earnings per share of 91 cents.

What to Expect:

The consensus estimate remains unchanged over the past month, but it has decreased from three months ago when it was 95 cents. Analysts are projecting earnings of $4.02 per share for the fiscal year.

Analysts look for revenue to decrease 5.4% year-over-year to $29.92 billion for the quarter, after being $31.63 billion a year ago. For the year, revenue is projected to come in at $122.44 billion.

Trends to Watch For:

The last two quarters have seen decreases in the company's net income. In the first quarter, net income fell 43.6% from the year earlier quarter, while the figure dropped 90.6% in the fourth quarter of the last fiscal year.

The company has experienced dips in revenue in the last two quarters. In first quarter, revenue was $30.04 billion, 7% lower than the year-ago figure. In the quarter before that, revenue fell 3.5%.

Analyst Ratings:

Analysts have become more optimistic about the stock recently and the number of buy ratings has risen slightly over the past three months.

Competitors:

Hewlett-Packard is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors. One of Hewlett-Packard's main competitors in the computers and peripherals industry is Apple (AAPL). Other competitors in the information technology sector include: Dell (DELL), Oracle (ORCL), and Microsoft (MSFT).

Recent Price Movement:

The stock price has fallen 24.5% to $22.06 from $29.20 since February 21, 2012.

Earnings estimates provided by Zacks.

Narrative Science, through its proprietary artificial intelligence platform, transforms data into stories and insights.

Since 1917, Forbes has stood, unwavering, for one overriding principle: the unshakable belief in the power of free enterprise. Our mission has also been clear and unchanging: to provide insights and information that ensure the success of those who tap into Forbes.

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