NEW YORK (TheStreet) -- HP (HPQ) - Get Report stock is slumping 3.75% to $10.28 in afternoon trading on Tuesday before reporting its 2016 first quarter financial results after Wednesday's market close.
HP will report its first earnings since the printer and personal computer company spun off its cloud business into Hewlett Packard Enterprises (HPE) in November.
Analysts expect HP to report earnings of 36 cents per share on revenue of $12.1 billion. Last year, the combined company posted earnings of 92 cents per share on revenue of $26.8 billion for the 2015 first quarter.
Although HP's PC sales could increase later this year, it's too soon to turn bullish on the company as its printing business remains pressured, Mizuho Securities analyst Abhey Lamba told MarketWatch. The firm has a "neutral" rating and $10 price target on the stock.
Lamba expects the company to maintain its full-year per-share earnings forecast.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
HP's strengths such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: HPQ
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.