HP's (HPQ) fourth-quarter results should show that splitting the old HP into two companies was the right choice, even if it was controversial.
Credit Suisse analyst Kulbinder Garcha noted that HP's competitors said the printer market has been weak, with its competition showing around 6% decline in constant currencies.
"We note that HPQ has historically seen a high correlation with several American and Japanese printing peers in the industry," Garcha wrote in a note to clients. "However, we also note strength in the A3 color MFP and high-end production/graphic segment, partially helped by the bump from DRUPA."
Garcha also noted that margins are likely to be weak, due to a significant portion of the company's revenue coming from Japan, which has seen a strengthening in the yen. However, margins should rebound next quarter to 16.2%, up from an estimated 14.4% this quarter.
Analysts compiled by Yahoo! Finance expect HP to earn 36 cents a share on $11.88 billion in revenue.
Wells Fargo analyst Maynard Um is encouraged by the company's recent dividend raise to 13.27 cents a share per quarter, a bump of 7%, noting strong free cash flow.
Um has a price target range on HP between $14 and $15 a share.
These three ETFs may benefit if investors like what HP has to say about the printing market now and for the next 90 days.
The 3D Printing ETF
The 3D Printing ETF (PRNT) has HP make up 4.88% of its portfolio and charges investors a 0.66% expense ratio.