Could HP’s Revenue Continue to Rise in Fiscal 2017 and Beyond?


Aug. 18 2020, Updated 10:20 a.m. ET

HP’s revenue expectations in fiscal 2017

Analysts expect HP’s (HPQ) revenues to rise 6.5% YoY (year-over-year) to ~$51.4 billion in fiscal 2017 compared to ~$48.2 billion in fiscal 2016. Its revenues are also expected to rise 1.3% in fiscal 2018 on a YoY basis to ~$52.1 billion.

HP’s non-GAAP (generally accepted accounting principles) EPS (earnings per share) could rise 3.1% YoY in fiscal 2017 to $1.65 and 7.9% YoY to $1.78 in fiscal 2018. Analysts expect peers Western Digital (WDC), Seagate (STX), and Apple (AAPL) to return revenues of 6.4%, -4.3%, and 19.6%, respectively, in their next fiscal years.

Article continues below advertisement

Profit margins

Analysts expect HP to post a net margin of 5% with an operating margin of 7.6% in fiscal 2017. The company reported a net margin of 5.2% with an operating margin of 7.9% in fiscal 2016.

HP’s profit margins, however, are expected to rise in 2018 and 2019, driven by a rise in revenue and operational efficiency. While analysts expect HP’s revenues to rise 1.3% in 2018, its net margin is expected to rise to 5.5% with an operating margin of 7.9%. Its operating margin and net margin are expected to be 8% and 5.6%, respectively, in 2019, compared with revenue growth of 1.3% YoY.

Peers Apple (AAPL), Western Digital (WDC), Microsoft (MSFT), and Seagate (STX) had operating margins of 27%, 21%, 31%, and 14%, respectively, at the end of their last reported fiscal quarters.


More From Market Realist