) is set to report fourth-quarter fiscal 2013 results on Nov 26.
Last quarter, it posted a negative surprise of 1.15%. Let us see
how things are shaping up for this announcement.
Factors This Past Quarter
Hewlett-Packard posted dismal third-quarter results wherein
both the top and bottom lines missed the Zacks Consensus
Estimate. Moreover, the company witnessed revenue declines in
every business segment barring the Software segment, which
recorded a 1% increase in revenues on a year-over-year basis.
Additionally, margin contractions also resulted in a
year-over-year decline in net profit.
The company is reeling under pressure due to soft consumer
demand in the PC industry. Moreover, pricing pressures in
personal systems, printing and servers are expected to impact
results. However, improvement in execution and
better-than-expected demand for Hewlett-Packard's big data,
security and cloud offerings are expected to provide some cushion
to the top line.
Our proven model does not conclusively show that
Hewlett-Packard is likely to beat earnings this quarter. A stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following
ESP for Hewlett-Packard is 0.00% since the Most Accurate estimate
stands at $1.00 per share, which is in line with the Zacks
Hewlett-Packard's Zacks Rank #3 (Hold) when combined with a 0.00%
ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
), with Earnings ESP of +2.04 and a Zacks Rank #1 (Strong
), with Earnings ESP of +7.32% and a Zacks Rank #3 (Hold).
), with Earnings ESP of +2.56% and a Zacks Rank #3 (Hold).
HEWLETT PACKARD (HPQ): Free Stock Analysis
INGRAM MICRO (IM): Free Stock Analysis Report
MICRON TECH (MU): Free Stock Analysis Report
SANDISK CORP (SNDK): Free Stock Analysis
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