HP (HPQ) is likely to post a higher-than-expected personal systems revenue in fiscal Q3, driven by pricing actions and residual pull-in despite worsening operating margin pressure, Bank of America Securities said in a Wednesday research report.
The brokerage said fiscal Q3 is likely to be another transition quarter, given the durability of personal systems demand, memory supply, and the pace of mitigation actions, which could offset memory headwinds. The company is due to report fiscal Q3 results on Aug. 26.
For fiscal Q4, BofA expects a company EPS guide of $0.65 to $0.75 and operating margins of 3.9%, given the trough quarter due to consumer mix and pricing lagging costs, according to the note.
Bank of America reiterated its underperform rating on the stock and a price target of $18.
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