S&P 500 (NYSE:SPY) component Hewlett-Packard (NYSE:HPQ) will unveil its latest earnings on Tuesday, November 20, 2012. Hewlett-Packard provides products, technologies, software and services to individual consumers, businesses and large enterprises, including customers in the government.
Hewlett-Packard Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.14 per share, a decline of 2.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.18. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.14 during the last month. Analysts are projecting profit to rise by 17.4% versus last year to $4.03.
Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at profit of $1 a share versus the estimate of net income of 99 cents a share. It marked the fourth straight quarter of beating estimates.
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A Look Back: In the third quarter, the company swung to a loss of $8.86 billion ($4.49 a share) from a profit of $1.93 billion (93 cents) a year earlier, but beat analyst expectations. Revenue fell 4.9% to $29.67 billion from $31.19 billion.
Stock Price Performance: Between August 21, 2012 and November 14, 2012, the stock price fell $6.79 (-34.1%), from $19.93 to $13.13. The stock price saw one of its best stretches over the last year between October 10, 2012 and October 18, 2012, when shares rose for seven straight days, increasing 4.4% (+62 cents) over that span. It saw one of its worst periods between February 16, 2012 and March 1, 2012 when shares fell for 10 straight days, dropping 15.5% (-$4.64) over that span.
Wall St. Revenue Expectations: Analysts predict a decline of 5.2% in revenue from the year-earlier quarter to $30.45 billion.
On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 3.5% in the fourth quarter of the last fiscal year, 7% in first quarter and 3% in the second quarter and then fell again in the third quarter.
Analyst Ratings: There are mostly holds on the stock with 14 of 25 analysts surveyed giving that rating.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.12 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.16 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5% to $44.92 billion while assets rose 1.1% to $50.24 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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