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Personal computing and printing company HP (NYSE: HPQ) will be reporting results this Tuesday afternoon. Here’s what to expect.
HP beat analysts’ revenue expectations last quarter, reporting revenues of $14.64 billion, up 4.2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates and a slight miss of analysts’ EPS guidance for next quarter estimates.
This quarter, the market is expecting HP’s revenue to grow 3.6% year on year, improving from the 2.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HP rarely misses Wall Street’s revenue estimates.
Looking at HP’s peers in the hardware & infrastructure segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Super Micro delivered year-on-year revenue growth of 123%, beating analysts’ expectations by 21.5%, and Diebold Nixdorf reported revenues up 11.7%, in line with consensus estimates. Super Micro traded up 13.8% following the results while Diebold Nixdorf was also up 11%.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the hardware & infrastructure stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.9% on average over the last month. HP is down 5% during the same time and is heading into earnings with an average analyst price target of $23.21 (compared to the current share price of $18.53).