HP Inc.
HPQ
is slated to report second-quarter fiscal 2022 results on May 31.
The company expects fiscal first-quarter non-GAAP earnings per share between $1.02 and $1.08. The Zacks Consensus Estimate for earnings is pegged at $1.06, indicating an improvement of 14% from the year-ago quarter.
The Zacks Consensus Estimate for revenues stands at $16.07 billion, suggesting growth of 1.2% from the prior-year quarter.
HP’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 9%.
HP Inc. Price and EPS Surprise
Factors at Play
HP’s second-quarter performance is likely to have benefited from strong demand for commercial PCs, mainly driven by the ongoing economic recovery and organizations worldwide slowly resuming their in-premise operations. Services like HP Provisioning Connect, which aims at setting up and supporting devices in employees’ homes and offices, might have driven the company’s sales in the quarter under review.
The company’s printing segment is likely to have gained from strong demand for consumer printers and a continued improvement in the commercial end market. The global launch of the smartest printing system, HP+, broadened the California-based company’s customer reach, which may have boosted printers’ sales in the to-be-reported quarter.
The HyperX acquisition is expected to have contributed to HP’s Personal System business performance in the to-be-reported quarter. However, the declining demand for consumer and educational PCs may have weighed on personal systems’ sales in the fiscal second quarter.
HP anticipates industry-wide components’ supply constraints to impact its ability to meet the demand for both PCs and printers. The pandemic-led disruptions in manufacturing, port and logistics, together with the dynamic macro environment due to the Russia-Ukraine conflict, are likely to have caused operational delays. These factors are expected to have hampered HPQ’s revenues in the quarter under review.
What Our Model Says
Our proven model predicts an earnings beat for HP this time. The combination of a positive
Earnings ESP
and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
HP currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.94%. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Other Stocks With Favorable Combination
Per our model,
AutoNation
AN
,
Commercial Metals
CMC
and
The Kroger Co.
KR
have the right combination of elements to post an earnings beat in their upcoming releases.
AutoNation is slated to report second-quarter 2022 results on Jul 18. The stock has a Zacks Rank #1 and an Earnings ESP of +2.15%. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 27.4%. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The Zacks Consensus Estimate for AN’s quarterly earnings is pegged at $5.95 per share, suggesting a year-over-year improvement of 23.19%. Its quarterly revenues are estimated to decrease 1.59% year over year to $6.87 million.
Commercial Metals has a Zacks Rank #2 and an Earnings ESP of +8.63%. The company is scheduled to report third-quarter fiscal 2022 results on Jun 16. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 16%.
The Zacks Consensus Estimate for CMC’s third-quarter bottom line is pegged at $1.97 per share, suggesting year-over-year growth of 89.4%. The consensus mark for revenues stands at $2.34 billion, indicating a rise of 26.9% from the year-ago quarter.
Kroger has a Zacks Rank #2 and an Earnings ESP of +2.95%. The company is scheduled to report first-quarter fiscal 2023 results on Jun 16. It has surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 22.1%.
The Zacks Consensus Estimate for KR’s first-quarter earnings is pegged at $1.27 per share, suggesting a year-over-year increase of 6.72%. The consensus mark for revenues stands at $43.22 billion, indicating an increase of 4.65% year over year.
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