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Valued at a market cap of $24.1 billion, HP Inc. (HPQ) provides personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies. The Palo Alto, California-based company serves individual consumers, small- and medium-sized businesses, and large enterprises. It is expected to announce its fiscal Q3 earnings for 2025 on Wednesday, Aug. 27.
Ahead of this event, analysts expect this computer hardware company to report a profit of $0.74 per share, down 10.8% from $0.83 per share in the year-ago quarter. The company has missed Wall Street’s earnings estimates in each of the last four quarters. In Q2, HP’s EPS of $0.71 fell short of the forecasted figure by 11.3%.
For fiscal 2025, analysts expect HP to report a profit of $3.09 per share, down 8.6% from $3.38 per share in fiscal 2024. Nonetheless, its EPS is expected to rebound in fiscal 2026, growing by 8.4% year-over-year to $3.35.
HP has declined 32.1% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 17.3% return and the Technology Select Sector SPDR Fund’s (XLK) 21.1% uptick over the same time frame.
On May 28, HP delivered its Q2 results, and its shares plunged 8.3% in the following trading session. Due to strong commercial performance in its personal systems segment, the company’s net revenue surged 3.3% year-over-year to $13.2 billion. However, despite the revenue growth, its adjusted EPS of $0.71 fell 13.4% from the year-ago quarter and came in 11.3% below the consensus estimates. This earnings miss might have weighed on investor sentiment.
Wall Street analysts are cautious about HPQ’s stock, with an overall “Hold" rating. Among 14 analysts covering the stock, three recommend "Strong Buy," 10 indicate "Hold," and one advises a "Strong Sell” rating. The mean price target for HPQ is $27.55, indicating a 7.2% premium from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
