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HP Inc. (HPQ) Quarterly Earnings Preview: Insights into Financial Performance and Market Position

HP Inc. (HPQ) Quarterly Earnings Preview: Insights into Financial Performance and Market Position

HP Inc. (NYSE:HPQ) is a global technology company known for its wide range of products and services, including personal computing, printing, and 3D printing. Operating in over 170 countries, HPQ is a significant player in the tech industry. The company is set to release its quarterly earnings on August 27, 2025, with Wall Street estimating an earnings per share (EPS) of $0.75 and revenue of approximately $13.7 billion.

The upcoming earnings report for HPQ is anticipated to reflect the positive impact of AI-driven PCs and the Windows 11 update. However, these gains might be partially offset by a decline in the printing business. Analysts project an EPS of $0.74, a 10.8% decrease from the previous year, while revenue is expected to rise by 2.4% to $13.85 billion, as highlighted by the consensus.

Over the past month, the consensus EPS estimate for HPQ has been revised downward by 0.6%. Such revisions are significant as they often predict potential investor actions and correlate with the short-term price performance of a stock. This reassessment by analysts indicates a cautious outlook on HPQ’s financial performance.

HPQ’s financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 10.38, reflecting the market’s valuation of its earnings. The price-to-sales ratio is about 0.48, indicating how much investors are willing to pay per dollar of sales. Additionally, the enterprise value to sales ratio is around 0.65, showing its total valuation relative to sales.

The company’s financial leverage is indicated by a debt-to-equity ratio of approximately -9.34, while its current ratio of around 0.73 suggests its ability to cover short-term liabilities with short-term assets. HPQ’s earnings yield is about 9.63%, providing insight into the return on investment for shareholders. These metrics are crucial for investors assessing HPQ’s financial health and market position.

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