Hewlett-Packard's Last Report Before It Splits, Wall Street Analysts React

Just as earnings season seemed to dim down a tad, tech giant Hewlett-Packard Company HPQ released fiscal Q3 earnings, the last earnings report for the company before it splits itself into two. Shares are down 2.50 percent in Friday’s pre-market session.

The global tech provider’s profits declined 13 percent in the quarter, further promoting a company split in order to reduce costs. Hewlett’s net income dwindled to $900 million, from $1 billion in fiscal Q3 of 2014. Total sales for the company decreased 8 percent to $25.3 billion, from $27.6 billion last year.

Wall Street analysts were projecting revenues close to $25.44 billion and an earnings per share of $0.85. Hewlett reported an earnings per share slightly ahead of expectations at $0.88 per share.

It’s split is anticipated for November 1st; Hewlett will be split into Hewlett Packard Enterprise, which will supply technologies to businesses, alongside HP Inc, a personal computing and a printer company.

With a mixed earnings report, Wall Street analysts stepped in to clarify any confusion:
UBS Securities: Lowered its price target for shares from $40 down to $36; UBS maintained its Buy rating for the stock.
FBR Capital: Lowered its price target from $36 down to $35; the firm reiterated its Sector Perform rating for the stock.
Mizuho Securities: Lowered its price target from $38 to $30; the firm maintained a Neutral rating on shares of HPQ.

SUMMARY: 3 price target declines; 1 Buy, 1 Sector Perform, and 1 Neutral rating. The new price target range is between $30 and $36.