Maker of expensive printer ink, HP, is expected to announce disappointing fourth quarter earnings results today after the markets closed.
The cocaine nose jobs of Wall Street have been consulting their tarot cards and concluded that HP will announce an EPS estimate of $0.84 ( down by 10.6 percent Y/Y) and a revenue of about $14.68 billion (down 12.1 percent Y/Y).
While those numbers are not too bad, HP has beaten EPS estimates 75 percent of the time and revenue estimates 38 per ent of the time.
Over the last three months, EPS estimates have seen no upward revisions and 15 downward. Revenue estimates have seen no upward revisions and 12 downward.
Credit Suisse downgraded the tech giant as revenue and margins are likely to be challenged due to weakening demand, pressure on average selling prices and macro uncertainty.
It believes HP is at risk as consensus estimates for the PC industry are too high for 2023 and there may be more pain if a recession happens.
Morgan Stanley said hardware underperformance accelerated this year due to slowing demand, macro uncertainty hitting enterprise hardware budgets, high inflation, and elevated balance sheet and channel inventories.
IDC said that total PC shipments fell to 74.3 million units in Q3 2022 on cooling demand and uneven supply. HP saw a 27.8 percent decline to 12.7 million units.
