Earnings Preview: Hewlett-Packard, DreamWorks, Target

By Carly Forster

Along with the beginning of Q1 2015 earnings reports, the last of the fourth quarter 2014 earnings reports are being announced in the next few weeks. What should investors watch for this week?

Hewlett-Packard:

Hewlett-Packard is scheduled to announce its earnings results for the first quarter of 2015 on Tuesday, February 24thafter market close. The company is expected to post $0.91 earnings per share, up one cent from the same quarter a year prior, and $27.35 billion in revenue.

In the fourth quarter of 2014 Hewlett-Packard disappointed investors by posting revenue of $28.4 billion, representing a 2% decline year-over-year. The company’s weakness stems from its IT services which has been representing a challenge for the industry as a whole. However, HP seems to be flourishing in its hardware business which analysts expect will help its revenue in its first quarter earnings.

Additionally, HPQ’s free cash flow in the fourth quarter of 2014 totaled $8.5 billion and $12.3 billion for the entire fiscal year. However, analysts do not anticipate much of a change in 2015 cash flow.

In October 2014, Hewlett-Packard announced plans to split into two separate publicly traded companies by the end of 2015. This will likely happen sometime between August and November of this year, or in between its third or fourth quarter. Hewlett-Packard Company (NYSE:HPQ) will divide into HP, which will sell computers and printing operations, and HP Enterprise, which will sell all software, storage, and cloud services.

On average, the top analyst consensus for Hewlett-Packard on TipRanks is Moderate Buy.

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DreamWorks:

Dreamworks Animation Skg Inc (NASDAQ:DWA) is poised to announce its fourth quarter 2014 earnings results on Tuesday, February 24th after market close. The company is expected to post a loss of -$3.15 a share, down from $0.33 earnings per share the same quarter last year. DreamWorks is also expected to post revenue of $248.90 million.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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