HP Inc’s shares gain 3% in after-hours trade on Wednesday, as second-quarter revenue, earnings exceed estimates

May 25, 2017 9:05 am

HP Inc’s (HPQ) total revenue was reported to have increased 6.9% year-on-year during the second quarter of fiscal year 2017, exceeding Wall Street estimates and supported by robust revenue growth from the company’s PC business.

HP shares closed higher on Wednesday, while marking their third gain in the past six trading sessions. The stock edged up 0.26% ($0.05) to $19.01, after touching an intraday high at $19.19, or a price level not seen since May 17th ($19.41). In after-hours trade, the stock surged by another 3% to $19.58.

In the week ended on May 21st the shares of the tech giant lost 1.55% of their market value compared to a week ago, which marked the first drop in the past six weeks, but yet, the smallest one since the week ended on January 22nd. However, the stock has extended its advance to 1.01% so far during the current month, following a 5.26% surge in April. The latter has been a fourth consecutive month of gains. For the entire past year, HP shares soared 25.34%.

Total revenue rose to $12.39 billion during the latest fiscal quarter from $11.59 billion during the same period a year ago. In comparison, Wall Street estimates had pointed to $11.88 billion in revenue.

Revenue from HP’s personal systems segment was reported to have surged 10% year-on-year to reach $7.66 billion during the second quarter.

At the same time, revenue from HP’s printers segment rebounded 2.3% to $4.74 billion during the latest three-month period, while marking the first increase in at least 1 year.

Additionally, HP Inc’s earnings per share were reported at $0.40 during the second quarter, which surpassed the Wall Street estimate by 1 cent.

Dion Weisler, HP’s President and CEO, said that the latest quarter was a “breakthrough quarter” for the company, while also expressing confidence that Hewlett-Packard Co’s decision to split into two separate entities in 2015 was “paying off”.

HP Inc also revised up its earnings forecast for the current fiscal year ending in October. The company’s adjusted profit from continuing operations is now projected to be within the range between $1.59 and $1.66 per share, up from a $1.55-$1.65 range, as expected in February.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding HP Inc’s stock price, have a median target of $18.00, with a high estimate of $22.00 and a low estimate of $14.00. The median estimate is a 5.31% decrease compared to the closing price of $19.01 on May 24th.

The same media also reported that 12 out of 25 surveyed investment analysts had rated HP Inc’s stock as “Hold”, while 11 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the HP stock are presented as follows:

R1 – $19.04
R2 – $19.06
R3 (Range Resistance – Sell) – $19.09
R4 (Long Breakout) – $19.16
R5 (Breakout Target 1) – $19.25
R6 (Breakout Target 2) – $19.29

S1 – $18.98
S2 – $18.96
S3 (Range Support – Buy) – $18.93
S4 (Short Breakout) – $18.86
S5 (Breakout Target 1) – $18.77
S6 (Breakout Target 2) – $18.73

By using the traditional method of calculation, the weekly levels of importance for HP Inc (HPQ) are presented as follows:

Central Pivot Point – $19.04
R1 – $19.44
R2 – $19.87
R3 – $20.27
R4 – $20.66

S1 – $18.61
S2 – $18.21
S3 – $17.78
S4 – $17.34

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