Hewlett-Packard is expected to post adjusted earnings per share of $0.884, fractionally better than the previous quarter's $0.88. Falling sales of $26.98 billion, lower than Q2's $27.3 billion, are not expected to prevent the company from posting pretax profits of $2.156 billion.
In the last eleven quarters Hewlett-Packard has beaten expectations in all but one quarter. Last year’s third-quarter figures have been the only miss in recent time, and the current positive trend during this current reporting season for US companies is likely to continue.
One minor issue that is once again beginning to gain prominence is the botched takeover of UK software company Autonomy. The general market perception is that Hewlett-Packard paid £6 billion way over the odds, and the ongoing court case surrounding this remains a mark on the company.
Regardless of how frothy equity markets might have been over the last twelve months shares in Hewlett-Packard have maintained a serene trajectory higher. The 50-day moving average has offered the shares solid support and only a close below the 100-DMA would give cause for concern.