Can Hewlett-Packard Beat These Numbers?

Hewlett-Packard (NYSE: HPQ  ) is expected to report Q1 earnings around Feb. 21. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Hewlett-Packard's revenues will wane -7.5% and EPS will decrease -22.8%.

The average estimate for revenue is $27.80 billion. On the bottom line, the average EPS estimate is $0.71.

Revenue details
Last quarter, Hewlett-Packard logged revenue of $29.96 billion. GAAP reported sales were 6.7% lower than the prior-year quarter's $32.12 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.16. GAAP EPS were -$3.49 for Q4 compared to $0.12 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 25.1%, 320 basis points better than the prior-year quarter. Operating margin was 10.1%, 330 basis points better than the prior-year quarter. Net margin was -22.9%, 2,360 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $112.03 billion. The average EPS estimate is $3.33.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,445 members out of 3,838 rating the stock outperform, and 393 members rating it underperform. Among 779 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 696 give Hewlett-Packard a green thumbs-up, and 83 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hewlett-Packard is hold, with an average price target of $18.63.

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