Can Hewlett-Packard deliver AN top side surprise in its commercial enterprise fourth quarter results on condition that giants like Cisco and IBM are unsteady of late?
That’s the question analysts are asking as H.P. sets up its final quarterly report of its yr. The short answer is that H.P. is not expected to deliver several surprises. At this time, H.P. meeting expectations would count as a giant win.
Most analysts expect H.P. to deliver ends up in line with expectations. Wall Street is expecting H.P. to deliver fourth quarter non-GAAP earnings of $1 a share on revenue of $27.9 billion.
Giants struggle: Cisco’s Q1 mixed: Revenue lightweight, earnings high estimates | IBM’s Q3 mixed, hardware business thumped
The moving elements for H.P. go like this:
The computer and printer unit could like higher demands for PCs with the Windows eight.1 launch. Meanwhile, company demand appears solid. The catch is that the U.S. government closure most likely dinged results to a small degree.
Services area unit doubtless to struggle along side the enterprise business. Federal defrayment caudate off and HP’s services business may be a add progress anyway. H.P. may be a high contractor within the U.S. government thus any pause in defrayment can hurt.
The enterprise business is probably going to be a miscellany too. the first factor to appear for from H.P. are comments concerning hyperscale computing and Project Moonshot servers. Server demand was tight within the half-moon for H.P. on the x86 front, however high finish UNIX system systems were thumped once more. Storage also will be tough and networking remains to be seen.
Deutsche Bank analyst Chris Whitmore noted that H.P. could have benefited from Dell’s move to travel non-public. The catch is that holler as a personal company will strategically use value as a weapon to harm H.P. margins within the future.
Emerging markets area unit planning to be robust. rising markets have hurt Cisco and IBM and there is no reason to assume H.P., that has been talking concerning issues in China for 2 quarters, can as if by magic escape the fallout.
HP’s outlook is anticipated to be in line with expectations too amid economic uncertainty. merely place there aren’t any fast fixes. Whitmore said: