Can HP Do Anything But Disappoint Wednesday?

Hewlett-Packard (NYSE:HPQ) might need a bit more time to make its turnaround a reality. With its earnings call coming up, it might be too soon to be very hopeful about positive results, especially with some industry-wide trends.

The whole personal computer industry has been shaky lately, with smartphones and tablets being a major disrupting force. Being at the top of the PC industry, HP has had to deal with a lot of the trouble, and the stress has shown in its stock. In the second half of 2011, HP shares slide from over $35 to under $25.

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The entrance of Meg Whitman as chief executive officer hasn’t produced a significant turnaround yet, as shares mostly continued a downward slide, falling below even $15.  More recently, shares have averaged between $20 and $25. While Whitman is planning a turnaround for the company, it may be too soon to expect results. It may not be until 2014 that results emerge, and the earnings call may be a change for Whitman to remind investors of that timeline.

Being the number-one PC vendor in terms of sales quantity, HP isn’t immune to the weakening PC market, but rather, extra vulnerable. If PC sales decline, a large share of that decline is likely to be felt by HP — and PC sales have experienced a record decline. With 28 percent of HP’s sales wrapped up in the PC business, the company has a lot to lose.

That same story repeats itself again when it comes to HP’s printer business. In that market, it is again the world leader in terms of sales. The company drew 20 percent of its revenue from printer sales in the last quarter. Since competitors Lexmark (NYSE:LXK) and Xerox (NYSE:XRX) didn’t post great results in their last earnings reports, it seems likely that HP may face similar results. However, HP did recently refresh some of its printing products, which may have helped it avoid some of the trouble.

HP’s enterprise and enterprise services business might not be the area to expect satisfying figures either. The enterprise business is wrapped up with the PC business, and faces similar declines. Additionally, Dell (NASDAQ:DELL) has been suggesting that it increased its market share, which would likely mean that it stole some of the share away from HP. The company’s enterprise services business is still in the early stages of reinvigoration, so it’s it may be too early to expect much from the unit.

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With those 4 areas of business on unsure footing, 92 percent of HP’s revenue is also put on unsure footing. In the previous quarter, those areas made up 92 percent of the company’s revenue. The PC business made the largest share, but revenue from the unit will likely decline. The printer business could go either way. Enterprise business doesn’t seem a whole lot more hopeful.

HP will make its earnings call Wednesday. Analysts expect profits of $0.81 per share on $28.1 billion in sales for the previous quarter and $0.84 per share on $27.8 billion for the July-ending quarter.

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