(Credits: The Guardian)
HP Inc (HPQ) is an interesting company to have on the watchlist now, especially following our latest #MarketMonday where we discussed certain companies that were either succeeding or stagnating at attempting to establish their presence in the technology trend; one that is acutely popular among investors these days.
HP Inc: HPQ Stock Remains on the Fence: (Released: 24/05/16)
James Brumley identifies the company as a “struggling technology giant,” as their income and revenue were below the estimates by double digits. Regardless of the fact that it is hard to conduct a year to year comparison because of the recent split from Hewlett-Packard, “the recent environment doesn’t look terribly encouraging.” Brumley attributes that to their poor job innovating; their innovation has consisted mostly of mere iterations and revamps of existing products. They continue to rely on PCs as a core business although the deterioration of the industry is evident. Yet, HP Inc is not completely ignoring the trend, it has set funds aside to invest in virtual reality, artificial intelligence and the Internet of things.
HP (HPQ) Stock Drops in After-Hours Trading on Weak Q3 Earnings Guidance: (Released: 24/05/16)
The market didn’t take long to hurt HP’s stock after their earnings release on Wednesday, when it went down by 1.64% in after hours. They reported higher than expected EPS, but it was the revenue that was lacking. It is not hard to picture this since they suffered a 10% decline in personal systems revenue with total units down 9%, a 16% decline in printing revenue and 15% decline in hardware units.
HPQ Stock: HP Inc Earnings Do Nothing for the Bull Case: (Released 25/05/16)
Yet, company President and CEO, Dion Weisler, is cited giving a rather overly optimistic commentary after the earnings, claiming that they have “unleashed truly amazing innovations, and grew in strategic areas of our business, despite tough market conditions.” Brumley says, “the corporate rhetoric doesn’t quite line up with the fiscal reality.” though still maintains that HPQ is indeed a good company, but it is indisputable that their core business is dying out.
HP Inc. (HPQ) Posts 11% Revenue Decline on Disappointing PC, Printer Sales: (Released 25/05/16)
Madeleine Johnson provides us with the measures worth analyzing before making conclusions ahead of time. They beat the earnings estimates posting $0.41 per share, rather than the estimated value of $0.39, and lagged behind in revenue though decreasing 11% from the same quarter last year. For the fiscal year 2016 they predict net EPS to be between the range of $1.59-$1.65 per share.
While the signs are pointing towards HP Inc going into a headwind, stay alerted with Call Levels for immediate updates on whether analysts are on the right track with their measures.