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

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Just as earnings season dimmed down, tech giant Hewlett-Packard Company (NYSE: HPQ) released fiscal Q3 earnings, the last earnings report for the company before it splits itself.

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.

Related Link: Citi Says Buy Hewlett-Packard 'Into Break-Up'

The split is anticipated for November 1; 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 weighed in:

  • UBS Securities: Lowered its price target from $40 to $36; maintained its Buy rating.
  • FBR Capital: Lowered its price target from $36 to $35; reiterated its Sector Perform rating.
  • Mizuho Securities: Lowered its price target from $38 to $30; maintained a Neutral rating.

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

Latest Ratings for HPQ

DateFirmActionFromTo
Jun 2019Initiates Coverage OnOutperform
May 2019MaintainsEqual-Weight
Apr 2019Initiates Coverage OnNeutral

View More Analyst Ratings for HPQ
View the Latest Analyst Ratings

Posted-In: Earnings News Price Target Reiteration Analyst Ratings

 

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