HP Inc (HPQ) F3Q Earnings on Watch

How's HP Doing? Key Takeaways from Its Latest Earnings Report


Computer giant HP Inc (NYSE:HPQ) has just released fiscal third-quarter results, posting revenue of $13.1 billion, up 10% year-over year, compared to consensus estimates of $12.3 billion. EPS of $0.43 was above consensus of $0.42. Lastly, cash flow from operations of $1.78 billion was meaningfully better than consensus of $1.18 billion. Looking ahead, full-year EPS guidance was raised to $1.63-1.66 (previous guidance: $1.59-1.66), compared to consensus of $1.64. For F4Q17, EPS guidance of $0.42-0.45 compares with current consensus of $0.44.

HP CEO Dion Weisler commented, “Q3 was another outstanding quarter of successfully executing our reinvention strategy […] We stabilized supplies revenue a quarter earlier than expected, posted double-digit revenue growth, delivered non-GAAP earnings per share at the high end of our previously provided outlook range and generated approximately $1.7 billion in free cash flow.”

Shares of HP are trading at $18.72, down $0.14 or -0.74% in after-hours Wednesday. HPQ has a 1-year high of $19.58 and a 1-year low of $13.55. The stock’s 50-day moving average is $18.75 and its 200-day moving average is $18.05.

On the ratings front, HPQ has been the subject of a number of recent research reports. In a report released yesterday, Loop Capital Markets analyst Ananda Baruah initiated coverage with a Buy rating on HPQ and a price target of $23, which implies an upside of 21% from current levels. On August 15, Stifel Nicolaus’ Keith Gay reiterated a Hold rating on the stock and has a price target of $14.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ananda Baruah and Keith Gay have a yearly average return of 6.4% and 1.7% respectively. Baruah has a success rate of 55% and is ranked #573 out of 4611 analysts, while Gay has a success rate of 57% and is ranked #2310.

Sentiment on the street is mostly bullish on HPQ stock. Out of 13 analysts who cover the stock, 7 suggest a Buy rating and 6 recommend to Hold the stock. The 12-month average price target assigned to the stock is $20.44, which implies an upside of 7% from current levels.

HP Inc. provides personal computing and other access devices, imaging and printing products, and related technologies, solutions and services to individual consumers, small and medium-sized businesses and large enterprises, including customers in the government, health and education sectors. It operates through following business segments: Personal Systems, Printing, and Corporate Investments.

 

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