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Stock Market & Financial Investment News

News Breaks
February 21, 2013
14:02 EDTHPQEarnings Preview: HP shares recover after $8.8B charge related to Autonomy deal
Hewlett-Packard (HPQ) is set to report Q1 earnings after the market close on Thursday, February 21, with a conference call scheduled for 5:00 pm ET. Hewlett-Packard is an IT company that provides hardware, software, and business and enterprise solutions... EXPECTATIONS: Analysts are looking for EPS of 71c on revenue of $27.79B, according to First Call. The consensus range for EPS is 68c-82c on revenue of $26.3B-$28.72B... LAST QUARTER: HP reported Q4 EPS of $1.16 against estimates for $1.14 on revenue of $29.96B against estimates for $30.34B. HP said it sees Q1 EPS ex-items 68c-71c against then estimates for 85c. HP affirmed its FY13 EPS view of $3.40-$3.60 against then estimates for $3.52; current FY13 EPS consensus is $3.49. In its Q4 report, HP said it was taking an $8.8B charge primarily related to its acquisition of UK-based software company Autonomy. The company said a majority of this charge was related to "serious accounting improprieties, disclosure failures and outright misrepresentations...that occurred prior to HP's acquisition of Autonomy." On December 27, HP said the Department of Justice had opened an investigation related to Autonomy, and on February 11 the Financial Reporting Council, the UK's accounting regulator, confirmed it was investigating Autonomy. Following Dell's (DELL) February 5 announcement that it was being taken private, HP released a statement saying it plans to take "full advantage" of any opportunities presented to the company as a result of Dell's deal. Since its Q4 report, reports of activist involvement in HP or a possible breakup of the company have circulated, though none of these reports have been publicly confirmed or denied... STREET RESEARCH: In the days following HP's Q4 results, shares were downgraded by at least four analyst firms. Following Dell's deal to be taken private, Jefferies said a takeover of HP is unlikely, and the firm maintains an Underperform rating on shares with a $10 price target. Wells Fargo issued a note in response to a story from Quartz that said HP's board was studying a breakup of the company, that said the firm thinks HP may spin off smaller units of the company, but that the PC or printer businesses are unlikely candidates to be spun off; Wells Fargo maintains a Market Perform rating on the stock. In a note earlier today, Sterne Agee maintained its Neutral rating on HP shares, saying that though shares remain inexpensive, continued pressure on HP's core businesses may reveal further downside in the stock... PRICE ACTION: Shares of HP are up over 26% since the first day of trading following its Q4 report. Shares of HP are up 0.6% in early afternoon trading ahead of its Q1 report.
News For HPQ 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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