廣告
香港股市 將在 5 小時 46 分鐘 開市
  • 恒指

    18,112.63
    +174.79 (+0.97%)
     
  • 國指

    6,421.81
    +62.45 (+0.98%)
     
  • 上證綜指

    3,028.92
    -8.55 (-0.28%)
     
  • 道指

    38,642.29
    -69.92 (-0.18%)
     
  • 標普 500

    5,432.90
    +11.87 (+0.22%)
     
  • 納指

    17,665.76
    +57.32 (+0.33%)
     
  • Vix指數

    11.99
    -0.05 (-0.42%)
     
  • 富時100

    8,163.67
    -51.81 (-0.63%)
     
  • 紐約期油

    78.24
    -0.26 (-0.33%)
     
  • 金價

    2,319.90
    -34.90 (-1.48%)
     
  • 美元

    7.8100
    +0.0005 (+0.01%)
     
  • 人民幣

    0.9280
    +0.0017 (+0.18%)
     
  • 日圓

    0.0495
    -0.0001 (-0.22%)
     
  • 歐元

    8.3891
    -0.0535 (-0.63%)
     
  • Bitcoin

    66,689.62
    -1,470.80 (-2.16%)
     
  • CMC Crypto 200

    1,420.78
    +7.82 (+0.55%)
     

HP (HPQ) Gears Up to Report Q2 Earnings: What's in Store?

HP Inc. HPQ is slated to release second-quarter fiscal 2024 results on May 29, after market close.

The company expects fiscal second-quarter non-GAAP earnings per share between 76 cents and 86 cents. The Zacks Consensus Estimate for earnings is pegged at 81 cents, indicating an improvement of 1.3% from the year-ago quarter.

The Zacks Consensus Estimate for revenues is pegged at $12.5 billion, suggesting a decline of 3.2% from the prior-year quarter.

HP’s earnings surpassed estimates in one of the trailing four quarters while matching on three occasions, the average surprise being 1.3%.

Let’s see how things have shaped up before the announcement.

HP Inc. Price and EPS Surprise

HP Inc. price-eps-surprise | HP Inc. Quote

Factors to Consider

HP’s fiscal second-quarter performance is likely to have been hampered by the volatile external environment that affects the demand for personal computers (PCs). Moreover, weak demand for PCs in China is expected to have hurt the company’s sales in the Personal System division.

廣告

High interest rates and protracted inflationary conditions are expected to have negatively impacted the demand for HPQ’s consumer PCs. The Zacks Consensus Estimate for Consumer PC’s fiscal second-quarter revenues is pegged at $2.2 billion.

Furthermore, enterprises are postponing their large IT spending plans due to the weakening global economy amid ongoing macroeconomic and geopolitical issues. This might have hurt HP’s commercial PC sales in the to-be-reported quarter. The consensus mark for Commercial PC’s fiscal second-quarter revenues is pegged at $5.86 billion.

However, inventory normalization at channel partners is likely to have somewhat offset the aforementioned negative impacts. The Zacks Consensus Estimate for the company’s Personal Systems revenues is pegged at $8.06 billion, indicating a decline of 1.4% from the year-ago quarter’s sales of $8.18 billion.

HP’s Printing division’s sales are likely to have been affected by softened consumer demand in China and an aggressive pricing environment, partially offset by growth in big tank printers. The consensus mark for the segment’s fiscal revenues is pegged at $4.37 billion, indicating a decline from the year-ago quarter’s $4.74 billion.

HP’s second-quarter fiscal 2024 bottom line is likely to have witnessed the benefits of disciplined cost management and a better product mix. Nevertheless, lower revenues, higher commodity costs, unfavorable currency exchange rates, increased investments in innovation and the go-to-market strategy are expected to have partially offset the benefits.

Earnings Whispers

Our proven model predicts an earnings beat for HP this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (82 cents per share) and the Zacks Consensus Estimate (81 cents per share), is +0.92%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: HP carries a Zacks Rank #3 at present.

Other Stocks With the Favorable Combination

Per our model, Dell Technologies DELL, Broadcom AVGO and REE Automotive REE have the right combination of elements to post an earnings beat in their upcoming releases.

Dell Technologies has an Earnings ESP of +2.30% and carries a Zacks Rank #2 at present. The company is scheduled to report first-quarter 2024 results on May 30. Its earnings estimates surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing in one occasion, the average surprise being 39.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DELL’s first-quarter earnings is pegged at $1.25 per share, indicating a decline from the year-ago quarter’s $1.31. The consensus mark for revenues is pinned at $21.7 million, indicating a year-over-year increase of 3.7%.

Broadcom has an Earnings ESP of +3.66% and carries a Zacks Rank #3 at present. The company is scheduled to report second-quarter 2024 results on Jun 12. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 2.8%.

The Zacks Consensus Estimate for AVGO’s earnings is pegged at $10.79 per share, indicating year-over-year growth of 4.6%. The consensus mark for revenues is pegged at $12 billion, implying an increase of 37.88% from the year-ago quarter.

REE Automotive has an Earnings ESP of +5.26% and a Zacks Rank #2 at present. The company is slated to report first-quarter 2024 results on May 30.

The Zacks Consensus Estimate is pegged at a loss of $1.81 per share. The consensus mark for REE’s revenues is pegged at $0.4 million.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

HP Inc. (HPQ) : Free Stock Analysis Report

Dell Technologies Inc. (DELL) : Free Stock Analysis Report

Broadcom Inc. (AVGO) : Free Stock Analysis Report

REE Automotive Ltd. (REE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research