NEW YORK (TheStreet) -- Shares of HP (HPQ) - Get Report were lower in early afternoon trading on Monday as the Palo Alto, CA-based technology and software products company is slated to report third quarter earnings and revenue after Wednesday's market close.
Wall Street is looking for HP to post earnings of 44 cents per share on $11.44 billion in revenue.
In the 2015 third quarter, the company reported earnings of 88 cents per share on $25.35 billion in revenue.
The reduced 2016 outlook is a result of HP and Hewlett Packard Enterprise's (HPE) 2015 split. As part of the divide, HP now sells PCs and printers, while Hewlett-Packard Enterprise sells computer systems, software and tech services, according to the Huffington Post.
HP has seen a steady decline in its printer business, with revenue falling 16% year-over-year in its April quarter to $4.64 billion.
The company announced in June that it would make a one-time investment to reduce the level of its printing supplies inventory. The change in printing strategy could reduce HP's free cash flow to between $2 billion and $2.3 billion this year, down from its prior estimated range of $2.3 billion to $2.6 billion.
For 2016, HP expects earnings to be between $1.59 per share and $1.65 per share.
Analysts project full-year earnings of $1.61 per share.
Additionally, RBC Capital Markets raised its price target on HP stock to $14 from $12 this morning, citing valuation, according to MarketWatch. The firm maintained its "sector perform" rating.
Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:
We rate HP INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: HPQ