What’s Expected of HP Inc. in Q4 2018?



Average revenue estimate of $15.1 billion

The last two days have been volatile for the markets. The broader indexes were in a sea of red on November 19 driven by a sell-off in the technology sector.

The Power Shares QQQ Trust, Series 1 ETF (QQQ) has fallen 5% this week, while the Technology Select Sector SPDR ETF (XLK) has fallen 5.9%. HP Inc. (HPQ) has also been affected, with its stock slipping 6.4% over the last two days.

HP Inc.’s upcoming earnings remain critical, as any deviation from the average estimates could result in a further price correction. Analysts expect HP to post revenue of $15.1 billion in the fourth quarter of fiscal 2018, an 8.4% rise year-over-year compared to $13.93 billion in the fourth quarter of fiscal 2017. Analysts expect HP’s non-generally accepted accounting principles EPS to rise 23% from $0.44 to $0.54 in the period.

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HP has beaten analysts’ estimates in two of the last four quarters

As we can see in the chart above, HP Inc. has managed to beat analysts’ earnings estimates in two of the last four quarters. In the third quarter of fiscal 2018, it reported EPS of $0.52, 2% higher than the estimate of $0.51. It met the earnings estimate of $0.48 in the second quarter.

HP Inc. also beat analysts’ earnings estimate of $0.42 by 14.3% in the first quarter of fiscal 2018, reporting EPS of $0.48. It reported EPS of $0.44, which was in line with estimates, in the fourth quarter of fiscal 2017.

HP will be announcing its earnings results on November 29.


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