Hewlett-Packard Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Hewlett-Packard Company (NYSE:HPQ) will unveil its latest earnings on Wednesday, May 23, 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 net income of 91 cents per share, a decline of 26.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 95 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 91 cents during the last month. For the year, analysts are projecting profit of $4.02 per share, a decline of 17.6% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at net income of 92 cents per share against an estimate of profit of. The company also topped expectations in the fourth quarter of the last fiscal year.

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Wall St. Revenue Expectations: Analysts predict a decline of 5.4% in revenue from the year-earlier quarter to $29.92 billion.

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

A Look Back: In the first quarter, profit fell 43.6% to $1.47 billion (73 cents a share) from $2.6 billion ($1.17 a share) the year earlier, but exceeded analyst expectations. Revenue fell 7% to $30.04 billion from $32.3 billion.

Key Stats:

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 90.6% in the fourth quarter of the last fiscal year and then again in the first quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 3.5% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

Stock Price Performance: Between February 22, 2012 and May 17, 2012, the stock price fell $6.74 (-23.4%), from $28.80 to $22.06. 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 4.4% (+99 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% (-$4.62) over that span.

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

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