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HP: Wall Street Watches for Signs of Progress

NEW YORK ( TheStreet) -- HP (HPQ - Get Report) reports its third-quarter results after market close with investors keen to see whether CEO Meg Whitman can make more progress at the embattled tech giant.

Last quarter, HP comfortably beat Wall Street's estimates, boosted by better-than-expected performance in Enterprise Services and Printing, as well as savings from the firm's massive restructuring efforts and improved operations.

Analysts surveyed by Thomson Reuters are looking for HP to report revenue of $27.29 billion and earnings of 86 cents a share, down from $29.67 billion and $1 a share in the same period last year.

"We believe HP has several levers to improve its operational performance in FY2014," wrote Keith Bachman, an analyst at BMO Capital Markets, in a note released on Wednesday. "We believe that it can report positive EPS growth in FY2014 even with declining revenues."

Bachman, who raised his HP target price to $30 from $24, pointed to the potential profit impact of the company's restructuring. "We think HP's stock can grind higher," he wrote. "We are surprised that HP has not seen greater benefit from restructuring thus far."

The analyst, who rates HP "market perform" also raised his 2013 earnings estimate to $3.59 from $3.52 and his 2014 earnings estimate to $3.85 from $3.60.

The PC maker's stock has risen more than 78% this year, as Whitman attempts to get HP back on track. The CEO has earned praise for her efforts to turn around the tech giant, specifically her transformation of the company's balance sheet.

The former eBay (EBAY - Get Report) chief is 20 months into an ambitious five-year plan to revitalize HP, and recently said that the company's turnaround is "just a bit" ahead of schedule.

Whitman has described fiscal 2013 as "a fix and rebuild year," with "recovery and expansion," "acceleration" and "industry-leading competition" characterizing the years 2014 through 2016.

The CEO replaced the ousted Leo Apotheker in September 2011 and has worked hard to streamline the tech giant's vast operations and set a clear strategic direction.

Key moves include nixing Apotheker's highly controversial plan for a possible PC spinoff and merging the company's PC and printer divisions in an attempt to combat falling hardware sales. In June, Whitman also shuffled the leadership of the firm's Printing and Personal Systems group (PPS).

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