How Does Hewlett-Packard Look Ahead of Earnings?

Hewlett-Packard (NYSE:HPQ) will report its first-quarter fiscal 2013 results on Thursday, and the stakes are high for the beleaguered PC maker. The company is coming off its first full-year revenue decline since 2009 and a massive earnings hit associated with the impairment of goodwill and purchased intangible assets, restructuring charges, amortization, and acquisition-related charges.

Most infamously, this includes an $8.8 billion non-cash charge related to fraudulent accounting practices at Autonomy, a major acquisition.

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2008 2009 2010 2011 2012
Revenue ($) in millions 118,364 114,552 125,682 127,854 119,934
Diluted EPS ($) 3.25 3.14 3.69 3.32 (6.41)

Last year was a major transition period for the company, and 2013 promises to bring a lot of the same turn-around rhetoric to the table. CEO Meg Whitman has made no small secret about the multi-year timeline for restructuring efforts and the costs associated with turning a leading PC maker into a more robust technology company with stable long-term revenue streams….

For the first quarter of fiscal 2013, Hewlett-Packard provided non-GAAP earnings guidance in a range between $0.68 and $0.71 per share. However, this does not include approximately $0.34 per share in after-tax costs related to the amortization of purchased intangible assets, restructuring charges, and acquisition-related charges…

For fiscal 2013, Hewlett-Packard provided an outlook for non-GAAP earnings in a range between $3.40 and $3.60 per share. Once again, this excludes after-tax charges of about $1.30 per share. The non-GAAP earnings outlook is inline with annual growth excluding 2012.

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Oct. 31, 2011 Jan. 31, 2012 Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012
Revenue ($) in millions 32,087 29,953 30,690 29,386 29,905
Diluted EPS ($) 0.11 0.73 0.80 (4.49) (3.47)

Looking quickly at PC sales, Hewlett-Packard only leads the industry if tablet sales are factored out of the equation. Including tablets as personal computers, Apple (NASDAQ:AAPL) claims the top spot in the PC market in the fourth quarter of 2012, backed by 75 percent growth in its iPad segment that brought total shipments to 27 million units. That represented a market share of over 20 percent, which compares to Hewlett-Packard’s 15 million shipments and 11 percent share for the same quarter. The beleaguered American company just barely managed to edge out Lenovo by 200,000 shipments for the period, a pretty narrow margin.

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