HP Inc. Earnings: What to Watch

By Rachael King Features Dow Jones Newswires

HP Inc. is scheduled to report fiscal fourth-quarter results on Tuesday after the market closes. Here is what you need to know:

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EARNINGS FORECAST: Analysts on average expect adjusted earnings of 44 cents a share, according to Thomson Reuters, a 22% increase compared with 36 cents a share in the year-earlier period. For the year, analysts forecast $1.65 a share, compared with $1.63 last year.

REVENUE FORECAST: Analysts on average expect revenue of $13.35 billion, up 6.7% from $12.51 billion reported a year ago. For the year, analysts forecast $51.39 billion, up from $48.24 billion last year.

WHAT TO WATCH:

PRINT POSSIBILITIES: HP completed its $1.05 billion acquisition of Samsung Electronics Co.'s printer business. Samsung had invested in the $55 billion A3 copier market, which handles larger, 16.5-inch by 11.7-inch paper popular for posters and photographic prints. HP has said the A3 market is its largest growth opportunity in business printing. The company said it would give updated financial guidance factoring in this acquisition during the Tuesday earnings call.

PC PICKUP: HP increased the number of personal computers it shipped world-wide by 4.4% in the calendar quarter ending in September, according to a report released by Gartner Inc. last month. It was the only PC maker to report an increase in shipments, while the market declined by 3.6%. CEO Dion Weisler has said repeatedly that he is interested in taking market share only if it can be done profitably. Analysts will be watching to see whether HP has done that.

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COMPONENT PRICING: Hardware makers are still grappling with a shortage of certain components including memory, which has driven up costs. In response, HP has increased PC prices globally. The market will be watching to see whether the company has been able to pass on cost increases.

Write to Rachael King at rachael.king@wsj.com

(END) Dow Jones Newswires

November 21, 2017 05:44 ET (10:44 GMT)