Hewlett-Packard Company First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Hewlett-Packard Company (NYSE:HPQ) will unveil its latest earnings on Wednesday, February 22, 2012. Hewlett-Packard provides products, technologies, software and services to individual consumers, businesses and large enterprises, including customers in the government.

Hewlett-Packard Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 87 cents per share, a decline of 36% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.11. Between one and three months ago, the average estimate moved down. It has been unchanged at 87 cents during the last month. For the year, analysts are projecting net income of $4.12 per share, a decline of 15.6% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the fourth quarter of the last fiscal year, it reported profit of $1.17 per share versus a mean estimate of $1.13. Two quarters ago, it reported net income of $1.10 per share.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 4.7% in revenue from the year-earlier quarter to $30.77 billion.

Analyst Ratings: Optimism surrounds Hewlett-Packard Company, as nine analysts rate it as a buy, six rate it as a sell, and 12 rate it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 90.6% to $239 million (16 cents a share) from $2.54 billion ($1.09 a share) the year earlier, but exceeded analyst expectations. Revenue fell 3.5% to $32.12 billion from $33.28 billion.

Key Stats:

A year-over-year revenue decrease in the fourth quarter of the last fiscal year followed a streak of three consecutive quarters of revenue increases. Revenue rose 1.5%in the third quarter of the last fiscal year, 2.5% in the second quarter of the last fiscal year and 3.6% in the first quarter of the last fiscal year.

The decrease in profit in the fourth quarter of the last fiscal year broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 8.6% in the third quarter of the last fiscal year, 4.7% in the second quarter of the last fiscal year and 15.8% in the first quarter of the last fiscal year.

Stock Price Performance: Between December 19, 2011 and February 16, 2012, the stock price had risen $4.76 (18.9%), from $25.13 to $29.89. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 16, 2011, when shares rose for six straight days, increasing 4.5% (+$1) over that span. It saw one of its worst periods between May 10, 2011 and May 23, 2011 when shares fell for 10 straight days, dropping 13.8% (-$5.68) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com