Hewlett Packard gears up for Q1 figures

Hewlett Packard’s first-quarter figures in 2013 came in 16% better than expected, but the company is unlikely to beat estimates for Q1 this year.

When Hewlett Packard announces its Q1 figures the markets will be expecting to see softer earnings-per-share and sales figures, but, more importantly, improving pre-tax profits up to $2.097 billion for the quarter.

The chief executive officer, Meg Whitman, has done a good job improving the firm’s figures, by reducing debt, raising revenue growth and increasing cash flows. With 3D printing expected to grow by 20% on an annual basis for the next couple of years, this would appear to be a market ready-made for HP. The company already has a client base of 2D users, so this appears to be an area of expansion that needs to be explored further. With all new products, there is a much healthier profit-margin to be had on this new technology.

The share price has done well in the last 14 months, but, in order to maintain this trajectory, the firm will need to bring something fresh to the table. The last 16 month period has seen the share price rise by more than 75% and continue to diverge away from the 200-day moving average. The relative strength index would indicate that the stock is not over-bought just yet, but those looking to go long should be cautious, as the company will need to provide information in order to warrant a continuation of this move.

Hewlett Packard chart

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.