HP is expected to exceed sales and profit consensus for the October quarter, particularly in PCs, despite macroeconomic pressures. Analysts are optimistic about the company's potential for recovery.
The renowned PC and printer giant, HP, is set to release its financial results for the October quarter later today. Analysts are optimistic about the company's performance and recommend investors hold the stock ahead of the announcement.
Amit Daryanani, an analyst at Evercore ISI, recently included HP stock (ticker: HPQ) in his firm's "tactical outperform list" while maintaining a longer-term In Line rating. In a research note, Daryanani states that he believes HP is well-positioned to exceed the current street consensus for the October quarter, specifically in the area of PCs. Despite facing macroeconomic pressures, the analyst remains confident in HP's ability to deliver positive results.
According to FactSet, the current sales consensus for the October quarter stands at $13.8 billion, with adjusted profits estimated at 91 cents per share. Daryanani anticipates that HP will outperform these expectations. The company's own guidance suggests a range of 85 cents to 97 cents per share for fourth-quarter profits.
During an analyst meeting in October, HP projected earnings of $3.25 to $3.65 per share for the fiscal year 2024. Daryanani believes this forecast could be conservative and expects HP to demonstrate potential upside in PCs, paving the way for recovery in the face of any macroeconomic challenges affecting its print business.
As of Monday, HP stock is trading slightly lower at $28.06.
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