HP LOOKING POSITIVE-EARNINGS, TARIFFS
In the Premarket trading session on Friday, HP stock was trading at $23.20- higher by 1.50% as compared to the previous closing price.
In recent news, the company reported its earnings after the market close on Thursday. HP’s quarterly revenue beat market expectations, driven by growth in its personal systems business that sells notebooks and desktops and the acquisition of Samsung’s printer business.
The personal systems business, which accounts for more than 60% of the company’s total revenue, rose 11% to $10.06 billion, beating consensus estimates of $9.78 billion.
HP completed the acquisition of Samsung’s printer business for $1.05 billion in November last year as a part of its efforts to strengthen the stagnant printer and copier business.
The California-based company said in a post-earnings call that it has not considered any impact from unannounced tariffs or any significant demand changes that may result from an increase in geopolitical uncertainties. HP further said it would consider price increases to respond to tariffs.
HP forecast current-quarter adjusted profit of 50 to 53 cents per share. Markets expected a profit of 52 cents per share.
EPS for the fourth quarter was 91 cents- up from 39 cents a year earlier.
The current price is above the MA5. The current price is below the middle line of the Bollinger bands but is heading upwards. The stock is expected to open higher on Friday.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 23.10 TAKE PROFIT AT 23.50 STOP LOSS AT 22.90