HP (HPQ) Stock Rises Ahead of Q2 Earnings

NEW YORK (TheStreet) -- HP (HPQ) stock is up 0.13% to $11.68 in afternoon trading Monday ahead of the company's fiscal 2016 second quarter financial report, due out Wednesday after the closing bell.

The Palo Alto, CA-based computer hardware company is expected to post a steep drop in earnings per share and revenue, reflecting the spin-off of Hewlett Packard Enterprise (HPE), which was completed last October.

Wall Street is anticipating earnings of 38 cents per share on revenue of $11.73 billion for the latest quarter, compared with 87 cents per share on revenue of $25.45 billion for the same quarter last year.

"Several data points from competitors point to a weak print spend, with American and Japanese peers both suffering double digit declines in print revenues," Credit Suisse analysts said in a note released last week.

HP's print margin will also be pressured due to a stronger yen since a significant part of the company's printing costs are in the Japanese currency, analysts added.

Separately, HP has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's expanding profit margins, which offset feeble earnings per share growth, deteriorating net income and weak operating cash flow.

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.

More from Markets

European Automakers Gain on Reports China Mulling Auto Tariff Reduction

European Automakers Gain on Reports China Mulling Auto Tariff Reduction

Global Stocks Mixed, U.S. Futures Soften as Earnings, Oil, Rates Cloud Sentiment

Global Stocks Mixed, U.S. Futures Soften as Earnings, Oil, Rates Cloud Sentiment

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Samsung Posts Record Q1 But Adds Cautious Voice To Smartphone Demand Forecasts

Samsung Posts Record Q1 But Adds Cautious Voice To Smartphone Demand Forecasts

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI