Market Overview

Hewlett Packard's Earnings Outlook


Hewlett Packard (NYSE:HPE) announces its next round of earnings this Tuesday, December 01. Here is Benzinga's look at Hewlett Packard's Q4 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Hewlett Packard modeled for quarterly EPS of $0.34 on revenue of $6.88 billion. In the same quarter last year, Hewlett Packard reported earnings per share of $0.49 on revenue of $7.21 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 30.61% decrease in the company's earnings. Revenue would be down 4.64% from the year-ago period. Hewlett Packard's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.23 0.30 0.44 0.46
EPS Actual 0.32 0.22 0.44 0.49
Revenue Estimate 6.06 B 6.32 B 7.23 B 7.40 B
Revenue Actual 6.82 B 6.01 B 6.95 B 7.21 B

Stock Performance

Shares of Hewlett Packard were trading at $11.22 as of November 27. Over the last 52-week period, shares are down 28.03%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hewlett Packard is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: Earnings