EPS Reddit Mentions | ChartExchange

HP Inc. (HPQ) is scheduled to report second-quarter fiscal 2023 results today, after-hours. The webcast will be available at www.hp.com/investor/2023Q2Webcast
Analysts forecast earnings of $0.760 per share compared to earnings of $1.08 per share in the same quarter of the previous year. They're also expecting sales of $13.07 billion, an decrease of 20.72% over the prior year quarter. For the current fiscal year, they expect earnings per share of $3.31 compared to $4.08 per share in the previous year. On average, the expected revenue is $55.09 billion, compared to $62.98 billion last year.
HPQ’s second-quarter performance is likely to have witnessed a negative impact of the slowdown in consumer demand for PCs and high inventory levels. HP witnessed the robust demand for its PCs during the pandemic-led work-and-learn-from-home wave. However, the reopening of economies and offices, inflationary pressure and recession concerns have been waning the demand for PCs.
Furthermore, enterprises are postponing their large IT spending plans due to the weakening global economy amid ongoing macroeconomic and geopolitical issues. This might have hurt HPQ’s commercial PC sales in the to-be-reported quarter. Per the preliminary data released by the International Data Corporation (IDC) in April 2023, PC shipments in the January-March 2023 quarter plunged 29% year over year to 56.9 million units. The latest data compiled by the market research firm depicts the fifth consecutive quarter of a PC sales decline following two successive years of strong year-over-year growth, driven by the pandemic-led increased demand for remote working and online-learning tools.
According to IDC, the year-over-year fall was mostly brought on by a decline in consumer demand for PCs, excessive inventory levels, and a dismal prognosis for the economy. PC demand fell as a result of persistent economic and geopolitical uncertainty and softening IT spending.
HPQ’s Printing division’s sales are likely to have been hampered by softened consumer demand. The consensus mark for the segment’s second-quarter revenues is pegged at $4.58 billion, indicating a year-over-year drop of 7.8%.
Additionally, HPQ's second-quarter bottom line probably reaped the rewards of competitive pricing, strict cost control, and a superior product mix. The advantages are likely to be more than offset by decreased revenues, higher commodity prices, unfavourable currency exchange rates, additional expenditures in innovation, and the go-to-market strategy.
This sounds pretty bearish. What's interesting is that HP did beat EPS last quarter and still dropped. I think getting puts would be a pretty easy choice, considering everything above. I'll be grabbing the HPQ 6/2 30p for 41 bucks each. Unless you think they'll say "AI" a bunch of times, it would be unreasonable to grab calls.