HPQ

Hewlett Packard’s Second-Quarter Results Exceed Expectations; Major Changes on the Way

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Hewlett-Packard posted strong second-quarter results that came in better than consensus expectations. We’re optimistic on HP’s restructuring plans as well as the company’s dirt cheap valuation. However, peers like Intel and Microsoft look like much more attractive investments with better growth potential and near-term catalysts. Both companies also provide investors with better, safer yields, as we think both are best-in-class in chips and enterprise software, respectively.

Hewlett-Packard’s Turnaround Still Many Quarters Away

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Hewlett-Packard (HPQ) reported disappointing fiscal first-quarter 2012 results as the company continues to struggle to right the ship. Though the turnaround is still many a quarter away, we are sticking with our fair value estimate for the world’s No. 3 personal computer maker at this time. Hewlett-Packard’s fiscal first-quarter revenue fell 7% (8% after adjusting for currency) from the same period a year ago, while the company’s GAAP diluted earnings per share dropped nearly 40%, to $0.73. Though this came in better than the firm’s previously-provided bottom-line outlook of $0.61 to $0.64 per share, we think expectations had been lowered to the point where an earnings beat had been completely expected. On a non-GAAP basis, earnings per share came in … Read more

Hewlett-Packard Reports Fiscal Fourth-Quarter Results; Outlook Well Below Expectations

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Hewlett-Packard (HPQ) reported better-than-expected fiscal fourth quarter results after the close Monday but its outlook fell well below our forecasts for fiscal 2012. We are placing our fair value estimate for HP under review as we continue to evaluate the future direction of the firm (the future of its PC business, its strategy in Europe, and how it will compete in tablets).   The firm’s non-GAAP net revenue fell 3% in the quarter (6% adjusted for currency), while non-GAAP net earnings dropped 23% as the firm faced 2.3 percentage points of non-GAAP operating margin pressure (non-GAAP operating margin was 9.7% in the quarter). Despite the reduced numbers, the results came in better than consensus estimates on both the top and … Read more

IBM Puts up Fantastic Second-Quarter Results

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International Business Machines (IBM) posted strong second-quarter results Monday. The firm’s top-line increased 12% (5% adjusting for currency), while net income advanced 8% from the same period a year ago. The firm indicated that hardware, software and services revenue grew at a double-digit pace, and the company raised its full year 2011 operating earnings per share guidance to at least $13.25 from at least $13.15 previously. Revenue from markets IBM categorizes as growth now represent about 22% of its top line, with particular strength from the BRIC countries – Brazil, Russia, India, and China – which advanced over 20% in the period. The firm’s services revenue continued at a nice pace of expansion, with backlog jumping $15 billion from the … Read more

2,350-2,750 on the S&P? Could the Coronavirus Catalyze a Financial Crisis?

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Image: We think a rather modest sell-off in the market to the target range of 2,350-2,750 on the S&P 500 is rather reasonable in the wake of one of the biggest economic shocks since the Global Financial Crisis. The chart above shows how far markets have advanced since 2011, and an adjustment lower to the target range of 2,350-2,750 is rather modest in such a context and would only bring markets to late 2018 levels (note red box as the target range). The range reflects ~16x S&P 500 12-month forward earnings estimates, as of February 14, adjusted down 10% due to COVID-19. When companies like Visa talk about a couple percentage points taken off of growth rates, one knows that … Read more

Dividend Increases/Decreases for the Week Ending March 20

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Below we provide a list of firms that raised their dividends during the week ending March 20. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week ALPS ETF Trust – ALPS Sector Dividend Dogs ETF (SDOG): now $0.4614 per share quarterly dividend, was $0.4196. ALPS ETF Trust – ALPS Equal Sector Weight ETF (EQL): now $0.6360 per share quarterly dividend, was $0.4789. ALPS ETF Trust – Cohen & Steers Global Realty Majors ETF (RDOG): now $0.6844 per share quarterly dividend, was $0.5113. Alpine Income Property Trust, Inc. (PINE): now $0.20 per share … Read more

Nelson: The 16 Most Important Steps To Understand The Stock Market

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A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more

Dividend Increases/Decreases for the Week Ending November 17

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Below we provide a list of firms that raised/lowered their dividends during the week ending November 17. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Agilent (A): now $0.149 per share quarterly dividend, was $0.132. American Equity (AEL): now $0.26 per share annual dividend, was $0.24. AmerisourceBergen (ABC): now $0.38 per share quarterly dividend, was $0.365. Aramark (ARMK): now $0.105 per share quarterly dividend, was $0.103. Bancroft Fund (BCV): now $0.41 per share quarterly dividend, was $0.25. Black Hills (BKH): now $0.475 per share quarterly dividend, was $0.445. Brown-Forman (BF.B): now … Read more

US Congress Is Getting Ready to Pass a Massive ~$2.2 Trillion Fiscal Stimulus Bill

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Image Shown: US equities have started to recover some of their lost ground as the likelihood that the US Congress will pass a massive ~$2.2 trillion fiscal stimulus and emergency spending package, dubbed the CARES Act, has increased significantly over the past week as seen through the bounce in the SPDR S&P 500 ETF Trust (SPY). President Trump has clearly indicated that he intends to sign such a bill into law as soon as possible, with the US House of Representatives expected to take up the legislation this upcoming Friday morning on March 27. By Callum Turcan On March 25, the US Senate worked late into the night to secure a bipartisan compromise on a massive ~$2.2 trillion fiscal stimulus … Read more