Market Overview

HP's Earnings Outlook

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On Tuesday, November 24, HP (NYSE: HPQ) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts expect HP's EPS to be near $0.52 on sales of $14.65 billion. In the same quarter last year, HP reported EPS of $0.6 on revenue of $15.41 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be down 13.33%. Sales would be down 4.91% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.43 0.45 0.54 0.58
EPS Actual 0.49 0.51 0.65 0.60
Revenue Estimate 13.31 B 12.85 B 14.63 B 15.27 B
Revenue Actual 14.29 B 12.47 B 14.62 B 15.41 B

Stock Performance

Shares of HP were trading at $20.45 as of November 20. Over the last 52-week period, shares are up 4.01%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. HP is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings