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.

By MSN Money Partner May 22, 2014 11:42AM
A Hewlett-Packard Co. LasetJet CP2025dn printer sits on display at an Office Depot store in Arlington, Virginia (© Andrew Harrer/Bloomberg via Getty Images)By Benjamin Pimentel, MarketWatch

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.



Tags: HPQ
3Comments
May 22, 2014 2:56PM
avatar
Hey, what are you doing?
Watching HP.
What for?
Signs.
Like... crop signs made by aliens?
Maybe.
Like... billboard ads?
Nope.
Why watch it then?
Buried up to my pastoolie in shares.
Oh... watching your wealth crash before your eyes.
Yep. 
May 22, 2014 11:36PM
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Didn't their CEO, run for California Governor...??  Maybe Cali was lucky..?
May 22, 2014 12:58PM
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Hoping for a quiet day, trying to finish flat to a bit up....We will see, volume is low and subtly scumbags are starting to make their move this afternoon...Still three long hours to go so anything and everything is possible....Be cautious, remember yesterday; manipulators didn't leave too happy....More later.
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