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Stock Market & Financial Investment News

News Breaks
August 20, 2014
13:42 EDTAUTNF, HPQEarnings Preview: Analysts view HP positively ahead of Q3 earnings report
Hewlett-Packard (HPQ) is set to report third quarter earnings after the market close on Wednesday August 20, with a conference call scheduled for 5:00 pm ET. Hewlett-Packard is a diversified IT company that provides hardware, software, and business and enterprise solutions to personal and corporate customers. EXPECTATIONS: Analysts are looking for earnings of 89c per share on revenue of $27.01B, according to First Call. The consensus range for EPS is 86c-90c on revenue of $26.50B-$27.49B. In its second quarter earnings release, HP said it sees Q3 adjusted EPS 86c-90c and FY14 adjusted EPS $3.63-$3.75, both of which were in-line with expectations. LAST QUARTER: HP reported Q2 EPS of 88c against estimates for 88c on revenue of $27.3B against estimates for $27.4B. Personal Systems revenue was up 7% year-over-year with a 3.5% operating margin. Enterprise Group revenue for the quarter was down 2% year-over-year with a 14.4% operating margin. HP also reported Q2 cash flow from operations of $3.0B. COMPANY NEWS: On May 31, HP announced that it reached an agreement to settle shareholder derivative litigation arising from the acquisition of Autonomy (AUTNF). The company announced on July 15 that its interim chairman, Ralph Whitworth, resigned from its board of directors to focus on his health. The next day, HP named CEO Meg Whitman chairman. The Justice Department announced on August 1 that HP agreed to pay $32.5M to resolve allegations under the False Claims Act that HP overcharged the U.S. Postal Service for products between October 2001 and December 2010. The U.S. alleged that under a contract between HP and the USPS, HP overcharged USPS by "failing to comply with pricing terms of the contract, including a requirement that HP provide prices that were no greater than those offered to HP customers with comparable contracts." STREET RESEARCH: After HP announced more layoffs, Wells Fargo noted on May 23 that HP said it was more confident in its growth outlook, and the firm thought the layoffs could reflect newly discovered cost cutting opportunities, rather than end market pressures. Wells continued to expect the company to grow in FY15 and kept an Outperform rating on the shares. On June 12, Goldman Sachs upgraded its rating on HP to Neutral from Sell saying the company's management executed a turnaround far more effectively than it anticipated. Goldman was more positive on HP's turnaround following the company's Discover event in Las Vegas and it raised its price target for shares to $32 from $25. Deutsche Bank said on July 8 that shares of HP were adequately reflecting the company's innovation and increased R&D investment. Deutsche noted HP's new product introductions were up nearly two times versus three years ago. The firm viewed the stock as attractively valued and reiterated a Buy rating on HP with a $40 price target. Monness Crespi upgraded HP from Buy to Neutral on August 18. PRICE ACTION: Since the first day of trading following HPs Q2 report on May 22, shares have risen approximately 8.5%. Over the past year, shares have increased over 33%. During late morning trading, shares of HP were down 32c, or 0.9%, to $35.16.
News For HPQ;AUTNF From The Last 14 Days
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February 3, 2016
11:33 EDTHPQCiti slashes PC outlook, expresses caution on related stocks
Citi significantly lowered its 2016 PC sales estimates, citing recent negative data points. In conjunction with the call, the firm lowered its estimates for three companies whose results are significantly affected by PC sales: HP Inc. (HPQ), Marvell (MRVL) and Intersil (ISIL). WHAT'S NEW: Citi analyst Jim Silva now expects PC sales to drop 6% this year, down from his previous estimate of a 2% decline. Recent data points indicate that demand for PCs has dropped significantly so far this year, while inventories are above normal, the analyst explained. Constrained budgets and macro concerns are restraining demand for PCs, Silva believes. Meanwhile, "there is not enough evidence" to conclude that the launch of Microsoft's (MSFT) Windows 10 will be a positive catalyst for PC sales this year, Silva said. Citing his view of PC trends, along with increased competition in the printer space, Silva lowered his 2016 EPS estimate for HP to $1.53 from $1.64. Statements by other printer makers, including Xerox (XRX) and Canon (CAJ), suggest that HP's margins on printers will "come under additional pressure," the analyst believes. He lowered his price target on the name to $10.75 from $14.50 and expects the stock to remain range-bound until analysts reduce their estimates further or its end markets improve. Intersil has 20% exposure to the PC market and the sales of its products related to computing are still strongly correlated with PC sales, Citi analyst Atif Malik stated. As a result, the company will face revenue headwinds throughout this year, stated the analyst. Malik, who expects the company's 2016 and 2017 EPS to come in below consensus levels, downgraded the stock to Sell from Neutral and set an $11.50 price target on the shares. Estimating Marvell's PC exposure at about 60%, Malik lowered his 2016 EPS estimate for the company to 42c from 48c and kept a Sell rating on the name. WHAT'S NOTABLE: Hedge fund Starboard Value disclosed this morning that it had bought a 6.7% activist stake in Marvell. The hedge fund said the shares are "undervalued" and The Wall Street Journal, citing sources familiar with the situation, said Starboard is betting the company can its boost margins by cutting costs, perhaps exiting its mobile device business. PRICE ACTION: In late morning trading, HP Inc. fell 3.3% to $9.55, Marvell rose 1.25% to $8.78 and Intersil dropped 4.4% to $11.93.
09:18 EDTHPQCitigroup to hold an analyst/industry conference call
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07:41 EDTHPQCiti lowers 2016 PC estimates to down 6% from down 2%
Citi analyst Jim Suva says recent data points indicate above normal PC inventories and "materially below seasonal demand" in early 2016. The analyst cut his 2016 PC estimates to down 6% from down 2%, well below IDC's estimate of down 3%. Suva believes there is a lack of evidence to suggest that Microsoft's (MSFT) Windows' 10 launch will drive a PC refresh in 2016. The analyst cut his estimates and price target for HP Inc. (HPQ) and kept a Neutral rating on the name.
06:48 EDTHPQHP Inc. esimates and price target lowered at Citi
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January 28, 2016
15:18 EDTHPQXcel Brands collaborates with HP Inc. to create Isaac Mizrahi smartwatch
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