Needham & Company Reiterates an 'Underperform' on Hewlett-Packard (HPQ); Mixed F1Q & Cautious F2Q; Long, Challenging Road Ahead
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Needham & Company reiterates an 'Underperform' on Hewlett-Packard (NYSE: HPQ).
Analyst, Richard Kugele, said, "We reiterate our rating on HP as the company is now only one quarter into what will likely be a multi-year recovery (even by their own admission). Positives from last night’s report were few (essentially only that the company beat its conservative EPS guidance and that the press release didn’t leak ahead of time). Unfortunately, negatives were plentiful, with challenges in virtually every business line, including HDD-related unit weakness in PCs and servers, a worsening of supplies inventory and poor consumer demand. The pace of the stock buyback also slowed as cash flow was poor and investments in the business must be made. In our view, this is one turnaround better observed from the sidelines."
Needham cuts FY12 EPS estimate from $4.04 to $4.03 and lowers FY revs from $126.61 bln to $120.48 bln. FY13 EPS raised from $4.74 to $4.89, but revs lowered from $130.94 bln to $126.81 bln.
For an analyst ratings summary and ratings history on Hewlett-Packard click here. For more ratings news on Hewlett-Packard click here.
Shares of Hewlett-Packard closed at $28.94 yesterday, with a 52 week range of $21.50-$48.55.
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Analyst, Richard Kugele, said, "We reiterate our rating on HP as the company is now only one quarter into what will likely be a multi-year recovery (even by their own admission). Positives from last night’s report were few (essentially only that the company beat its conservative EPS guidance and that the press release didn’t leak ahead of time). Unfortunately, negatives were plentiful, with challenges in virtually every business line, including HDD-related unit weakness in PCs and servers, a worsening of supplies inventory and poor consumer demand. The pace of the stock buyback also slowed as cash flow was poor and investments in the business must be made. In our view, this is one turnaround better observed from the sidelines."
Needham cuts FY12 EPS estimate from $4.04 to $4.03 and lowers FY revs from $126.61 bln to $120.48 bln. FY13 EPS raised from $4.74 to $4.89, but revs lowered from $130.94 bln to $126.81 bln.
For an analyst ratings summary and ratings history on Hewlett-Packard click here. For more ratings news on Hewlett-Packard click here.
Shares of Hewlett-Packard closed at $28.94 yesterday, with a 52 week range of $21.50-$48.55.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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