H-P (HPQ) Weaker Following Dell (DELL) Report; Possible Sign of Things to Come?
Tweet
Share
E-mailGet Alerts HPQ Hot Sheet
Price: $29.71 +0.81%
Revenue Growth %: +2.9%
Financial Fact:
Earnings from operations: 1.12B
Today's EPS Names:
BTTX, VAXX, ELYS, More
Revenue Growth %: +2.9%
Financial Fact:
Earnings from operations: 1.12B
Today's EPS Names:
BTTX, VAXX, ELYS, More
Join SI Premium – FREE
Hewlett-Packard (NYSE: HPQ) shares are showing some pre-open weakness early Wednesday following earnings results from rival Dell, Inc. (Nasdaq: DELL).
In the quarter, Dell reported earnings of 48 cents per share on revenue of $15.66 billion, shy of consensus views calling for earnings of 48 cents per share and revenue of $15.76 billion.
Hewlett-Packard is a direct competitor with Dell on many fronts, from PCs to servers, so the results should be important to investors. Hewlett-Packard, which will report its quarterly results on Thursday after the market close, is expected to report earnings of $1.09 on revenue of $31.19 billion, just about flat sequentially.
Investors in Hewlett-Packard will remember the report in mid May, when an internal memo from CEO Leo Apotheker was "leaked" to the media. In the memo, Apotheker told executives and managers to expect a "tough" third quarter. It was more than just words, though, as Hewlett-Packard guided for third-quarter earnings of $1.09 per share on revenue of $31.1 to $31.3 billion, both shy of views at the time.
But with Hewlett-Packard expecting lighter results reflecting "an expected near-term impact from the Japan earthquake and related events, continued softness in sales of consumer PCs, and reduced operating profit expectations for Services," are Dell's results foreshadowing what's to come? H-P draws the majority of its revenue from its PC division, a division that saw it's operating margins contract even further to 5.7 percent in the most recent quarter, by far the tightest on its balance sheet. One final point: Dell reported a 3 percent drop in Desktop PC revs in the quarter, the only year-over-year drop in revs other than in its Storage segment.
Until Thursday.
Dell is 6 percent lower late Tuesday, while Hewlett-Packard is down 2.3 percent.
In the quarter, Dell reported earnings of 48 cents per share on revenue of $15.66 billion, shy of consensus views calling for earnings of 48 cents per share and revenue of $15.76 billion.
Hewlett-Packard is a direct competitor with Dell on many fronts, from PCs to servers, so the results should be important to investors. Hewlett-Packard, which will report its quarterly results on Thursday after the market close, is expected to report earnings of $1.09 on revenue of $31.19 billion, just about flat sequentially.
Investors in Hewlett-Packard will remember the report in mid May, when an internal memo from CEO Leo Apotheker was "leaked" to the media. In the memo, Apotheker told executives and managers to expect a "tough" third quarter. It was more than just words, though, as Hewlett-Packard guided for third-quarter earnings of $1.09 per share on revenue of $31.1 to $31.3 billion, both shy of views at the time.
But with Hewlett-Packard expecting lighter results reflecting "an expected near-term impact from the Japan earthquake and related events, continued softness in sales of consumer PCs, and reduced operating profit expectations for Services," are Dell's results foreshadowing what's to come? H-P draws the majority of its revenue from its PC division, a division that saw it's operating margins contract even further to 5.7 percent in the most recent quarter, by far the tightest on its balance sheet. One final point: Dell reported a 3 percent drop in Desktop PC revs in the quarter, the only year-over-year drop in revs other than in its Storage segment.
Until Thursday.
Dell is 6 percent lower late Tuesday, while Hewlett-Packard is down 2.3 percent.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- UBS says bull market has further to run
- Hunterbrook bullish on Modine Manufacturing (MOD)
Create E-mail Alert Related Categories
Earnings, Insiders' Blog, Trader TalkRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
