Wells Fargo Securities Sees Potential EPS Upside for Hewlett-Packard Company

In a report published Wednesday, Wells Fargo Securities analyst Maynard Um reiterated an Outperform rating on

. In the report, Wells Fargo Securities noted, “We think the story for FQ1 will be margins while the rev softness should be generally expected. We expect upside to Street's $0.85 EPS est (Wells Fargo: $0.86) driven by margins (Wells Fargo est: 8.6%) – note we exclude any financial impact from the sale of patents to QCOM. However, we believe rev could be light of Street's $27.2B and our $27.1B driven by a deliberate focus on profitability, particularly in PCs, offset somewhat by year-end enterprise IT spending. We believe Services could benefit from improving margins and a delay in one account run-off, Printing should be largely in line, PCs to see rev softness offset by better margins, and Enterprise group to be in line to slightly better driven by storage/servers.” Hewlett-Packard Company closed on Tuesday at $29.58.