Investors watch for turnaround signs at HP
The company reports its quarterly earnings Thursday, and analysts are expecting decent results but a complicated long-term picture.
Hewlett-Packard (HPQ) will report fiscal second-quarter results after the closing bell on Thursday.
Here's what investors can expect.
Earnings: The Palo Alto, Calif.-based technology company is expected to report a profit of 88 cents a share, a penny more than the 87 cents a share it earned in the year-ago quarter, according to a consensus survey by FactSet.
Revenue: HP is expected to report sales of $27.43 billion, down slightly from $27.58 billion the company reported in the year-earlier period.
Stock react: HP shares have gained about 9 percent in the last three months, amid rising optimism that the company is turning around, aided by stronger sales in data center hardware and even PCs. The stock was last up 16 percent year-to-date.
Key areas: H-P is considered a tech giant in recovery mode after being battered by several years of challenges, including abrupt management changes and a shrinking PC market, in which the company is heavily exposed. Chief Executive Meg Whitman's turnaround plan has shown some modest gains, though analysts expect a multiyear recovery process.
"In light of H-P's restructuring initiative and certain tailwinds in the portfolio, we believe the company can at least deliver in-line results in the near term; however, we believe the longer-term picture will prove more complicated, as competitors have more aggressively invested in next-generation technology architectures," Cantor Fitzgerald analyst Brian White told clients in a note.
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