HP (HPQ) Q3 Earnings: What To Expect
\Shares of HP Inc. (HPQ - Free Report) have surged over 10% in the last month to inch near their five-year high, in a sign that investors might expect big things from the PC power’s upcoming quarterly earnings results. Plus, HP is coming off an impressive quarter of top and top bottom line growth. So let’s take a look at what to really expect from HP’s Q3 financial results.
Overview
Last quarter, HP saw its personal systems revenues jump 14%. The firm’s commercial net revenues surged 16%, with consumer revenues up 10%. Diving a bit deeper, HP’s total units sold popped 7%, with both desktops and notebooks up 7%. Meanwhile, HP’s printing revenues increased 11% from the year-ago period.
Overall, the PC giant’s fiscal second-quarter revenues surged 13% to roughly $14.0 billion. Investors will also likely be pleased to see that the company’s adjusted quarterly earnings hit $0.48 per share, which marked a 20% climb.
HP is known mostly for its PCs, printers, and laptops. But the company has launched some more new-age products recently that have the potential to be successful on a larger scale. One of those products is a “mixed reality” headset. Different from standard virtual reality, HP’s new offerings allow users to have real objects in their virtual world or virtual objects in the real world. The company also rolled out its HP Z VR Backpack, which it described as the “world’s first professional wearable VR PC.”
Stock Movement & Valuation:
Shares of HP have dipped by roughly 13% in the last three years. But HP has seen its stock price soar nearly 70% over the last 24 months, which outpaces its industry’s 57% climb—which includes IBM (IBM - Free Report) , Cisco (CSCO - Free Report) and others—and blows away the S&P 500’s 30% gains. More recently, shares of HP have climbed by 32% over the last year.
Outlook..
Our current Zacks Consensus Estimate is calling for HP to post quarterly earnings of $14.11 billion, which would mark an 8% climb from the year-ago period. Looking a little further ahead, the company is expected to see its fiscal year revenues jump by 10.5% to hit $57.51 billion.
At the other end of the income statement, HP’s adjusted quarterly earnings are projected to surge 16.3% to touch $0.50 per share. More impressively, the firm’s full-year EPS figure is expected to jump over 21% to $2.00 per share.
HP has seen its EPS projection climb by $0.01 over the duration of the quarter. The PC firm has also topped or matched our quarterly earnings estimates for 10 straight quarters. HP is currently a Zacks Rank #3 (Hold) and sports an “A” grade for Value and “Bs” for both Growth and Momentum in our Style Scores system.
HP is set to release its Q3 financial results on Thursday, August 23.
