Fly Intel: What to watch in HP Inc.'s earnings report

HP Inc. (HPQ) is scheduled to report results of its fiscal second quarter after the market close on May 23, with a conference call scheduled for 5:30 pm ET. What to watch for: 1. GUIDANCE: Along with its last report, HP INc. guided for Q2 earnings per share in a range of 50c-53c. At the time, analysts were expecting the company to reports Q2 EPS of 53c, but that consensus estimate has since fallen to 51c. Meanwhile, the company said in its last report that it expects EPS for fiscal 2019 of $2.12-$2.22. At the time, Wall Street saw HP reporting FY19 of $2.20, but that figure has since slipped to $2.15. 2. HUAWEI: Last week, President Donald Trump issued an executive order "declaring a national emergency to deal with the threat posed by the unrestricted acquisition or use in the United States of information and communications technology or services designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries." The move by the president will effectively bar sales by Chinese networking company Huawei, and HP Inc. is among the companies that may be affected by such news, along with Cisco (CSCO), Juniper (JNPR), Ciena (CIEN), F5 Networks (FFIV), and Nokia (NOK). Meanwhile, the Verge reported earlier this week that Microsoft (MSFT) has cut Huawei's MateBook X laptop from its store, since it's "no longer a viable alternative to Apple's (AAPL) MacBook Pro or the HP Spectre x360 and even Microsoft's own surface lineup." 3. IDC PC MONITOR MARKET: According to International Data Corporation's Worldwide Quarterly PC Monitor Tracker in late March, the global market for PC monitors experienced an overall year-over-year fall of 2.1% in the fourth quarter of 2018, though quarterly growth remained unchagned with global monitor shipments totaling 31.4M units. According to the IDC, HP saw more than 4.5M units shipped, resulting in 14.6% share in Q4, putting it behind Dell (DELL) and just ahead of Lenovo (LNVGY) in terms of market share. 4. GARTNER PC SHIPMENTS: According to preliminary results released by Gartner in mid-April, worldwide PC shipments totaled 58.5M units the first quarter of 2019, a 4.6% decrease from the first quarter of the previous year. "We saw the start of a rebound in PC shipments in mid-2018, but anticipation of a disruption by CPU shortages impacted all PC markets as vendors allocated to the higher-margin business and Chromebook segment," said Mikako Kitagawa, senior principal analyst at Gartner. "While the consumer market remained weak, the mix of product availability may have also hindered demand. In contrast, Chromebook (GOOG) shipments increased by double digits compared with the first quarter of 2018, despite the shortage of entry-level CPUs. Including Chromebook shipments, the total worldwide PC market decline would have been 3.5% in the first quarter of 2019."

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