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What's in the Offing for HP (HPQ) This Earnings Season?
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HP Inc. (HPQ - Free Report) will report fourth-quarter fiscal 2020 results today after the closing bell.
The company estimates non-GAAP earnings between 50 cents and 54 cents. The Zacks Consensus Estimate for quarterly earnings is pinned at 52 cents per share, indicating a 13.3% year-over-year decrease. The consensus mark for revenues is pegged at 14.55 billion, suggesting a year-on-year decline of 5.6%.
The company’s earnings surpassed estimates in all of the trailing four quarters, the surprise being 13.4%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
HP’s fiscal fourth-quarter performance is likely to have benefited from solid demand for personal systems, driven by the remote-working and online-learning trends amid the COVID-19 pandemic. Nevertheless, industry-wide CPU and panel supply constraints might have affected its ability to meet demand.
For the printing segment, HP had earlier projected improvements from the fiscal third-quarter level across units, revenues, supplies revenues, profit dollars and margin rate. However, from on the demand front, the company had anticipated commercial print to be depressed during the quarter under review.
Additionally, adverse foreign-currency fluctuations and macroeconomic woes are the key concerns this earnings season.
What Our Model Says
Our proven model does not predict an earnings beat for HP this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
HP currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
The Toronto-Dominion Bank (TD - Free Report) has an Earnings ESP of +14.02% and carries a Zacks Rank of 2, at present.
Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +13.95% and currently carries a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
What's in the Offing for HP (HPQ) This Earnings Season?
HP Inc. (HPQ - Free Report) will report fourth-quarter fiscal 2020 results today after the closing bell.
The company estimates non-GAAP earnings between 50 cents and 54 cents. The Zacks Consensus Estimate for quarterly earnings is pinned at 52 cents per share, indicating a 13.3% year-over-year decrease. The consensus mark for revenues is pegged at 14.55 billion, suggesting a year-on-year decline of 5.6%.
The company’s earnings surpassed estimates in all of the trailing four quarters, the surprise being 13.4%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
HP’s fiscal fourth-quarter performance is likely to have benefited from solid demand for personal systems, driven by the remote-working and online-learning trends amid the COVID-19 pandemic. Nevertheless, industry-wide CPU and panel supply constraints might have affected its ability to meet demand.
HP Inc. Price and Consensus
HP Inc. price-consensus-chart | HP Inc. Quote
For the printing segment, HP had earlier projected improvements from the fiscal third-quarter level across units, revenues, supplies revenues, profit dollars and margin rate. However, from on the demand front, the company had anticipated commercial print to be depressed during the quarter under review.
Additionally, adverse foreign-currency fluctuations and macroeconomic woes are the key concerns this earnings season.
What Our Model Says
Our proven model does not predict an earnings beat for HP this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
HP currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Deere & Company (DE - Free Report) has an Earnings ESP of +17.06% and sports a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Toronto-Dominion Bank (TD - Free Report) has an Earnings ESP of +14.02% and carries a Zacks Rank of 2, at present.
Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +13.95% and currently carries a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>