HP Inc. Earnings: What to Watch
November 21 2017 - 5:59AM
Dow Jones News
By Rachael King
HP Inc. is scheduled to report fiscal fourth-quarter results on
Tuesday after the market closes. Here is what you need to know:
EARNINGS FORECAST: Analysts on average expect adjusted earnings
of 44 cents a share, according to Thomson Reuters, a 22% increase
compared with 36 cents a share in the year-earlier period. For the
year, analysts forecast $1.65 a share, compared with $1.63 last
year.
REVENUE FORECAST: Analysts on average expect revenue of $13.35
billion, up 6.7% from $12.51 billion reported a year ago. For the
year, analysts forecast $51.39 billion, up from $48.24 billion last
year.
WHAT TO WATCH:
PRINT POSSIBILITIES: HP completed its $1.05 billion acquisition
of Samsung Electronics Co.'s printer business. Samsung had invested
in the $55 billion A3 copier market, which handles larger,
16.5-inch by 11.7-inch paper popular for posters and photographic
prints. HP has said the A3 market is its largest growth opportunity
in business printing. The company said it would give updated
financial guidance factoring in this acquisition during the Tuesday
earnings call.
PC PICKUP: HP increased the number of personal computers it
shipped world-wide by 4.4% in the calendar quarter ending in
September, according to a report released by Gartner Inc. last
month. It was the only PC maker to report an increase in shipments,
while the market declined by 3.6%. CEO Dion Weisler has said
repeatedly that he is interested in taking market share only if it
can be done profitably. Analysts will be watching to see whether HP
has done that.
COMPONENT PRICING: Hardware makers are still grappling with a
shortage of certain components including memory, which has driven
up costs. In response, HP has increased PC prices globally. The
market will be watching to see whether the company has been able to
pass on cost increases.
Write to Rachael King at rachael.king@wsj.com
(END) Dow Jones Newswires
November 21, 2017 05:44 ET (10:44 GMT)
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