After U.S. markets closed on Tuesday, HP met analysts’ consensus estimate for earnings per share (EPS) and missed the revenue consensus by about 1.4%. Revenue was down 9.9% year over year. PC revenue was down 11% year over year, and printer sales fell 7%. The stock traded down 10% shortly after Wednesday’s opening bell.
Hewlett Packard Enterprise beat estimates on both the top and bottom lines. Year over year, revenue was up by less than 1%. The company issued in-line EPS and revenue guidance for the current quarter. Guidance for the full fiscal year was also in line with estimates. Shares traded about 2.1%.
After U.S. markets close on Wednesday, Chewy, CrowdStrike, Pure Storage and Salesforce will report quarterly earnings, and early Thursday, Campbell Soup, KE Holdings, and Polestar Automotive take their turns in the earnings spotlight.
No notable reports are set for release on Friday or Monday, thanks to the long Labor Day holiday.
Here is a look at what analysts expect when these three companies release quarterly results after U.S. markets close Thursday.
Broadcom
Chipmaker Broadcom Inc. (NASDAQ: AVGO) has added about 73% to its share price in the past 12 months, including a gain of almost 60% for the year to date.
Last week, U.K. regulators approved the company’s proposed $69 billion acquisition of VMware, ruling that the deal would not harm competition for server hardware. That leaves only a blessing from U.S. regulators to close the deal. Broadcom expects that approval because U.S. regulators have let a required waiting period expire, and the company believes that “there is no legal impediment to closing under U.S. merger regulations.”
Analysts remain strongly bullish on the stock, with 21 of 29 having a rating of Buy or Strong Buy. Another seven have Hold ratings. At a recent price of around $890.00 a share, the implied gain based on a median price target of $900.00 is 1.1%. Based on a high price target of $1,050.00, the upside potential is 18%.
For Broadcom’s fiscal third quarter, analysts are looking for revenue of $8.86 billion, which would be up 1.5% sequentially and by 4.7% year over year. Adjusted EPS are forecast at $10.43, up 1.1% sequentially and 7.2% higher year over year. For the full 2023 fiscal year ending in October, estimates call for EPS of $42.11, up 11.9%, on sales of $35.8 billion, up 7.8%.
Broadcom trades at 21.1 times expected 2023 EPS, 19.5 times estimated 2024 earnings of $445.63 and 18.0 times estimated 2025 earnings of $49.46 per share. The stock’s 52-week trading range is $415.07 to $923.18. Broadcom pays an annual dividend of $18.40 (yield of 2.07%). Total shareholder return for the past year was 78.20%.
Dell
Over the past 12 months, shares of Dell Technologies Inc. (NYSE: DELL) have added more than 39% to their price. The company posted a new 52-week high earlier this month after BofA Securities analyst Erik Woodring said that the company’s servers are an interesting play on generative AI applications.
These days, there’s nothing like a link to AI to light a fire under stocks. Investors might want to pay special attention to what Dell has to say about its links with AI. If they’re less than glowing, or if the timeline is either unclear or longish, the stock could get a bloody nose.
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