) is set to report third-quarter 2013 results on August 21. Last
quarter, it posted a 7.41% positive earnings surprise. Let's see
how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that HP is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP:
The Company projects an Earnings Surprise Projection or ESP (
Zacks Earnings ESP: A Better Method
) of 2.30% for third quarter. That is because the Most Accurate
estimate stands at 89 cents while the Zacks Consensus Estimate is
lower at 87 cents.
Zacks Rank #2 (Buy):
HPQ has a Zacks Rank #2 (Buy). HPQ's Zacks Rank #2, when combined
with an ESP of 2.30%, makes a strong case for an earnings
The combination of HP's Zacks Rank #2 (Buy) and 2.30% ESP
makes us very confident in looking for a positive earnings beat
on August 21.
What is Driving the Better-Than-Expected Earnings?
Some analysts believe that HP is witnessing an upside in the
by upside in PCs (market share gains) and also witnessing some
stability in printing and services. So, they expect EPS to
improve in the upcoming quarter.
The positive trend is seen in the trailing four-quarter
average surprise of 6.42%, which was greatly helped by the 7.41%
surprise in the last-reported quarter. This was possible because
HP did a good job of controlling expenses and thereby expanding
margins especially in printing.
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:
COMP SCIENCE (CSC): Free Stock Analysis
HEWLETT PACKARD (HPQ): Free Stock Analysis
PORTFOLIO RCVRY (PRAA): Free Stock Analysis
DONNELLEY (RR) (RRD): Free Stock Analysis
To read this article on Zacks.com click here.
Computer Sciences Corp.
), Earnings ESP of 1.18% and Zacks Rank #2 (Buy)
R. R. Donelley.
), Earnings ESP of 2.50%and Zacks Rank #1 (Strong Buy)
Portfolio Recovery Inc.
), Earnings ESP of 2.33% and Zacks Rank #2 (Buy)