HP (HPQ) and Dell (NYSE:DELL) are set to announce their quarterly earnings after the closing bell on Thursday, with analysts expecting mixed performance from both companies. The consensus on HP remains cautious, with both sell-side analysts and Seeking Alpha’s Quant Rating system assigning a Hold rating. Meanwhile, Dell receives a Buy recommendation from Wall Street analysts, though SA’s Quant Rating system remains cautious with a Hold.
Analyst Expectations
HP Inc. (HPQ)
- Consensus EPS Estimate: $0.74
- Consensus Revenue Estimate: $13.35 billion
- Recent Performance: HP has beaten EPS estimates in 4 of the past 8 quarters, topping revenue estimates in 3 of those reports.
- Analyst Sentiment: Hold rating from both sell-side analysts and SA’s Quant Rating system.
Dell Technologies (DELL)
- Consensus EPS Estimate: $2.51
- Consensus Revenue Estimate: $24.59 billion
- Recent Performance: Dell has exceeded revenue estimates in 6 of the past 8 quarters, missing EPS expectations only once in that span.
- Analyst Sentiment: Buy recommendation from Wall Street analysts, Hold rating from SA’s Quant Rating system.
PC Market Trends and Challenges
- Tariff Impact: Taiwan-based Acer, a competitor of HP, Dell, and Apple, is considering shifting manufacturing out of China due to tariffs.
- Price Increases: Acer CEO Jason Chen stated that the company plans to raise PC prices by 10% in response to U.S. tariffs, according to The Telegraph.
- Market Positioning: Both HP and Dell continue to navigate evolving industry trends, with Dell maintaining a stronger revenue track record in recent quarters.
With earnings reports on the horizon, investors are keenly watching HP and Dell’s financial performance and market strategies. While Dell’s earnings history and Wall Street sentiment appear more favorable, the broader PC market faces headwinds from tariffs and pricing challenges. The upcoming reports will provide key insights into how both companies are adapting to these pressures and positioning themselves for future growth.
