15.79 0.00 (0.00%)
After hours: 4:19PM EDT
|Bid||15.69 x 3000|
|Ask||15.70 x 4000|
|Day's Range||15.01 - 15.87|
|52 Week Range||12.54 - 23.93|
|Beta (5Y Monthly)||1.05|
|PE Ratio (TTM)||7.81|
|Earnings Date||Aug 20, 2020 - Aug 24, 2020|
|Forward Dividend & Yield||0.70 (4.66%)|
|Ex-Dividend Date||Jun 09, 2020|
|1y Target Est||17.69|
There has been significant divergence between individual stock prices and their expected earnings next year, presenting some buying and selling opportunities for investors
The economic environment is riddled with uncertainty, yet stocks are climbing higher. To kick off the week of trading, all three of the major U.S. stock indexes landed in the green yesterday, with the market aggressively charging forward since its trip to bear territory in March.So, is there still room for stocks to rise? J.P. Morgan says yes. The firm’s strategists led by Nikolaos Panigirtzoglou argue that billions of dollars could still get pumped into equities instead of bonds as investors rebalance portfolios.“Investors are still underweight equities and signs of overextension are confined to momentum traders... There is still plenty of room for investors to raise their equity allocations,” Panigirtzoglou wrote in a note to clients. This suggests that investors have the capacity to support the market during a more tumultuous time.Bearing this in mind, we used TipRanks’ database to get all of the details on three stocks in J.P. Morgan’s coverage universe. Looking at two tickers the firm believes could surge in the next year and one it is sidelined on, we wanted to find out if the rest of the Street agrees with the calls. As it turns out, they do. Kala Pharmaceuticals (KALA)Focused on developing therapies using its mucus-penetrating particle (MPP) technology, Kala Pharmaceuticals wants to provide patients suffering from eye diseases with more effective treatments. On the heels of a major milestone for the company, J.P. Morgan gave it a rave review.Representing the firm, analyst Christopher Neyor highlights the FDA’s recent acceptance of the NDA resubmission for Eysuvis, KPI-121, which incorporated pivotal Phase 3 results from the STRIDE-3 study. Given the October 30 PDUFA date, the analyst thinks this sets the stage for a possible late 2020 approval and launch of KALA’s lead asset in acute dry eye. He also sees this development as making the risk/reward profile “highly favorable”, with “a potential move into the mid-teens near-term and further upside longer term.”Speaking to the market opportunity, Neyor estimates that peak sales could exceed $750 million based on “fairly conservative assumptions for both product pricing (below chronic dry eye therapies) and market penetration (among ~17 million U.S. diagnoses dry eye patients) with upside to over $1 billion potential peak sales.”To support this forecast, Neyor stated, “Our physician feedback indicates significant unmet need for an acute dry eye treatment with patients of nearly all severity levels experiencing intermittent flares. Further, there are currently no approved products on the market or late-stage competitors that offer rapid relief for short-term acute dry eye symptoms within a few days.”The good news doesn’t end there. The company already has sales and marketing infrastructure for its approved product in post-surgical pain and inflammation, Inveltys (KPI-121), which could be leveraged during Eysuvis’ launch. KALA plans to further expand its sales team, with the Inveltys salesforce completely overlapping the target Eysuvis ophthalmology prescribing base. In addition, the significant unmet need means there could be faster uptake and reimbursement decisions, in Neyor’s opinion.With Neyor also calling Inveltys “de-risked”, the deal is sealed. He assumed coverage with an Overweight call and lifted the price target from $14 to $19, implying 42% upside potential.Turning now to the rest of the Street, other analysts are on the same page. With 100% Street support, or 5 Buy ratings to be exact, the consensus is unanimous: KALA is a Strong Buy. The $23 average price target brings the upside potential to 72%. (See Kala stock analysis on TipRanks)Fly Leasing Limited (FLY)Taking its place as one of the top aircraft leasing companies, Fly Leasing offers a fleet of modern, high-demand and fuel-efficient commercial jet aircrafts. As a result of its lagging equity recovery from mid-March lows and peer-leading valuation, J.P. Morgan just gave it a thumbs up.Comparing FLY to other major players, analyst Jamie Baker tells clients that the company has been left in the dust by the larger names. Still, since its “mid-March pummeling”, it has staged a significant recovery. Although it lacks the “market cap enormity” as well as an order book, Baker thinks that the current share price reflects a unique buying opportunity.“Based on our revised forecasts, FLY’s valuation relative to peers has widened to a level we now believe begets opportunity... Simply put, at current levels, we believe risk/reward in FLY shares is skewed to the upside,” Baker commented.On top of this, after evaluating FLY and its peers under the same set of deferment and write-off assumptions, Baker believes its liquidity is more “robust”. As there are only $10 million of debt maturities for the rest of 2020 and $413 million in 2021, with no capex for the remainder of 2020 and only ~$27 million in 2021, liquidity is still positive and doesn’t rely on revolver capacity.It should be noted, however, that FLY doesn’t boast the same level of revolver availability as its competitors do. That said, Baker remains confident in FLY’s ability to round out the year with liquidity of $409 million and $242 million in 2021.To this end, Baker to take a more bullish approach. In addition to upgrading FLY’s rating from Neutral to Overweight, he reduced the price target. Even with the haircut, the $15 figure still suggests shares could climb 69% higher in the next year. (To watch Baker’s track record, click here) All in all, other analysts echo Baker’s sentiment. 3 Buys and no Holds or Sells add up to a Strong Buy consensus rating. Based on the $12 average price target, the upside potential comes in at 35%. (See Fly Leasing stock analysis on TipRanks)HP Inc. (HPQ)When evaluating information tech giant HP, J.P. Morgan saw the lack of catalysts, fiscal Q2 earnings release that was impacted by headwinds in the printer segment and weak outlook for printing in fiscal Q3 as reason enough to step onto the sidelines.During the quarter, EPS came in at $0.51 on revenue of $12.5 billion, down 10% year-over-year in constant currency, but slightly above the consensus estimate. While the personal systems (PS) business was helped by strong WFH demand, the printing segment dropped 18% year-over-year, with the steepest decline in commercial hardware, which fell 31% year-over-year.Going forward, its guidance for fiscal Q3 EPS is below expectations. Writing for the firm, analyst Paul Coster stated, “Mostly it is continued weakness in the printing business that should draw attention of the skeptics.”That being said, Coster believes the HP bulls will point to management’s decision to postpone the use of leverage in an expanded share buy-back as being the source of the negative sentiment. Coster acknowledges that given the historic levels of uncertainty, it makes sense why HP chose to delay the leveraged buybacks. However, he argues that “absent this catalyst, in our view, there isn’t much reason to add to positions in this stock through year-end given tough second half year-over-year comps for the PS segment, and ongoing declines in the Printer segment.”Coster added, “There should be some downside support owing to strong cash-flow prospects and a ~4% dividend yield, and the planned expense containment warrants attention, but for now we think HPQ is stranded in value territory.”Based on all of the above, Coster downgraded HPQ from Overweight to Neutral. Additionally, he trimmed the price target from $21 to $20. Despite the cut, the target still implies upside potential of 32%. (To watch Coster’s track record, click here) What does the rest of the Street have to say about HPQ? It turns out that other analysts agree with Coster. 10 Holds, 1 Buy and 1 Sell have been received in the last three months, so the consensus rating is a Hold. At $17.55, the average price target suggests 16% upside potential. (See HP stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Computing giant Hewlett Packard Inc. (HPQ), which focuses on PCs and printers, said it has secured a 364-day revolving credit facility, with aggregate lending commitments of $1 billion.Loans under the senior, unsecured revolving credit facility will be used for general corporate purposes, the company said in a SEC filing. JPMorgan Chase Bank, N.A. will act as the administrative agent on the credit line.Last week, HP reported lower-than-expected revenues with sales sales declining about 11%, while also pulling its financial guidance for the year due to the uncertain business impact of the coronavirus pandemic. The computing giant, which in March already experienced a significant slowdown in some of its products, including printers, as offices closed and trade shows were cancelled, said it expected a larger hit to the print business in the third quarter.Shares in HP have dropped some 27% so far this year and were trading at $15.14 as of Friday’s close.Following last week’s earnings results, Credit Suisse analyst Matthew Cabral cut the stock’s price target to $16 from $17 and maintained a Hold rating.“We expect the full run-rate of demand weakness to further weigh on F3Q (CSe -25% y/y for Supplies) which, in turn, drags down profitability,” Cabral wrote in a note to investors. “With print under significant pressure near-term and lingering WFH magnifying the secular headwinds coupled with risk of a pull-forward from 2H in PCs, we remain neutral awaiting greater line-of-sight on a return to steady-state EPS/FCF.”All in all, the Street is currently taking a cautious approach to HP. The Hold consensus rating breaks down into 10 Holds, 1 Sell and 1 Buy. The average price target comes in at $17.55 and implies potential upside of 16%. (See HP’s stock analysis on TipRanks).Related News: Logitech Shares Lifted In Pre-Market On Share Buyback Plan, 10% Dividend Boost Apple Snaps Up AI Startup Inductiv, As Analysts Boost PTs On Store Reopenings KKR Invests $1.5 Billion in Reliance’s Jio Platforms In Biggest Deal In Asia More recent articles from Smarter Analyst: * Philips Gets FDA Emergency Use Nod For Monitors, Displays During Covid-19 Pandemic * Free Version of WWE Network Now Available for Fans * Bristol Myers Reveals Positive Results For Ulcerative Colitis Pivotal Trial * Pfizer Embarks On $500 Million Investment Plan For Biotech Businesses
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each […]
Tech companies Dell Technologies Inc (NYSE: DELL) and HP Inc (NYSE: HPQ) reported their earnings this week. At the very least, they hurdled Wall Street estimates. Despite more people working from home, HP stock dropped sharply upon the results as only earnings estimates were topped. On the other hand, Dell's results drove shares more than 7%. No financial targets for the full year were given due to uncertainty regarding the length of the pandemic and the consequent slow pace of the economic recovery.HP's revenue was held backIn their most recent quarter ending on April 30, the personal computer and printer maker achieved total revenue of $12.5 billion. Sales fell 11.2% from the same quarter a year ago. Analysts expected $12.86 billion. The good news is that earnings per share of 51 cents topped estimates of 45 cents.Compared to the prior year, sales at HP's personal systems and printing segments dropped 7% and 19%, respectively. But the big difference is in operating profits. In the personal systems segment, profit surged 43% from the prior year, but in the printing segment, it fell 35%. The Palo Alto, California based company ended the quarter with $4.1 billion in cash. On a year-over-year basis, revenue dropped 11% with earnings dipping 4%. But what made the stock plunged 5.5%, besides the sales miss, is that the company didn't provide a revenue target for the current quarter. It only gave an earnings expectation of 42 cents per share. By the looks of it, HP's diverse portfolio and go-to-market capabilities are what protected its earnings. Also, HP's financial position showed the company can weather the storm.Dell's business blossomed from work-from-home trendsFor the quarter that ended in April, Texas-based company achieved revenues of $21.90 billion. Quarterly earnings amounted to $182 million. Adjusted earnings were $1.34 per share whereas Zacks Consensus Estimate was 3.09% lower at $1.01 per share. But the actual result is lower when compared to $1.45 per share earned in the same quarter last year. On a brighter note, the quarterly report delivered an earnings surprise of 32.67% whereas, in the previous quarter, there was no surprise as the estimate equaled the actual result. Moreover, Dell achieved a good track record as it surpassed both consensus EPS and revenue estimates three times over the last four quarters.Most importantly, the tech giant said the pandemic has boosted its business in certain sectors. For example, the revenue of Dell's Client Solutions Group rose 2% year over year to $11.1 billion. The segment saw demand for commercial laptop units surge in double-digits whereas mobile workstation saw high-single-digit revenue growth. This is due to orders from banking and financial services, government and health care providers expanding 15% to 20% as these businesses struggled to meet the immediate needs of their customers, communities and patients. Overall, despite flat sales and an earnings drop on a year-over-year basis, Dell portrayed a strong financial performance that was well beyond expectations so no wonder its shares went up.OutlookWe know by now that the entire fiscal year will be filled with uncertainty so everyone will be eagerly waiting for estimates of the current and upcoming quarters. The good news is that customers need essential technology now more than ever before so they can restart their businesses in a COVID-19 remote working environment. One thing is certain: the current conditions will act as a strong catalyst for transformation that is upon both HP and Dell.This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases - If you are looking for full Press release distribution contact: email@example.com Contributors - IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: firstname.lastname@example.org Questions about this release can be send to email@example.comThe post HP and Dell At Least Managed to Top Estimates appeared first on IAM Newswire.See more from Benzinga * COVID-19 Seems To Be Speeding Up The Cannabis Revolution * Earnings Results Show Discount Retailers Have An Edge In The COVID-19 Era * Stocks To Watch This Week(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Both sides — buyer and seller — are in the same boat, providing additional motivation to get deals done.
(Bloomberg) -- Dell Technologies Inc. reported quarterly revenue and profit that were better than projected on greater sales of personal computers to businesses with employees working from home, even while server demand waned. Shares jumped 7% in extended trading.Revenue was $21.9 billion in the period that ended May 1, little-changed from a year earlier, the Round Rock, Texas-based company said Thursday in a statement. On average, analysts estimated $20.8 billion, according to data compiled by Bloomberg. Dell generated profit, excluding some items, of $1.34 per share, easily beating analysts’ projection of 95 cents.Chief Executive Officer Michael Dell has been the architect of a strategy to offer diversified information technology. The company makes PCs, data-center hardware, cybersecurity products and other software. The resulting empire was saddled with debt, which the company has prioritized paying down to have an investment-grade credit rating. Dell reported it repaid $5.4 billion in debt during the fiscal first quarter, leaving it with $48.4 billion in long-term debt.To save costs during the recession caused by the coronavirus pandemic, Dell has frozen hiring, raises, promotions and contributions to its employees’ 401(k) retirement plans, Bloomberg News reported this month. During Donald Trump’s tenure as president, Dell has shifted its supply chain away from China where possible to avoid the worst effects of the trade war with the U.S. That decision looks to have paid off, with Dell’s PC business holding up better than that of rival HP Inc., which on Wednesday reported declining PC sales partly due to supply disruptions.In a conference call after the results, Sweet said revenue in the current period would be “seasonally lower” than in prior years. Usually, sales in the three months ending in July are higher than in the fiscal first quarter, but that may not happen this year. Dell withdrew its forecasts in March and Sweet didn’t offer any further guidance on Thursday.“We’re all navigating through a difficult time right now, but our focus has been on let’s get through this, let’s do the right thing and then let’s position the company properly to take advantage of the opportunities post-crisis,” Chief Financial Officer Tom Sweet said in an interview. Among those opportunites, he said, are demand from the explosion of data, new fifth-generation wireless networks and edge computing, in which servers are located closer to customers rather than at far-way centers.Dell also said it would suspend a share-repurchase plan announced in February that was valued at $1 billion over two years.Shares reached a high of $49.74 in extended trading after closing at $45.58 in New York. The stock has dropped 11% this year.Fiscal first-quarter revenue in Dell’s personal computer division, called the Client Solutions Group, climbed 2% to $11.1 billion from a year earlier. Dell said there was “double-digit unit and revenue growth” in laptops sold to businesses in the quarter as well as “high-single-digit revenue growth” in mobile workstation computers. Overall, the commercial PC business gained 4% to $8.63 billion. Consumer PC sales declined 5% to $2.47 billion.Sales in Dell’s data-center hardware unit, called the Infrastructure Solutions Group, dropped 8% to $7.57 billion. Servers and networking gear sales fell 10% while storage hardware dipped 5%. The company attributed the drop to customers spending more on “remote work and business continuity solutions” rather than server farms.VMware Inc., the publicly traded software maker that Dell owns more than 80% of, saw revenue advance 12% in the first quarter, to $2.8 billion.(Updates with comments from CFO in the sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
There is an emerging concern that HP’s printer business simply won’t recover to pre-Covid levels in an environment when many workers spend less time working from offices.
Dell Technologies posted better-than-expected results for its fiscal first quarter as demand for notebooks heated up amid the work-from-home trend.
The U.S. death toll from the coronavirus that causes COVID-19 rose above 101,000 on Thursday, one day after it exceeded the 100,000 level, a grim marker for the nation with the highest number of cases and deaths in the world.
HP Inc.’s notebook sales got a boost as more people rushed to equip themselves with the tools needed to work remotely, but other key areas of the business didn’t hold up as well.
It may seem counterintuitive, but downturns and bear markets present an opportunity for entrepreneurs to start a new business. Because the “uncertainty” that traditional businesses, not to mention financial markets, reputedly hate, isn’t an issue for entrepreneurs. The current downturn, often referred to as the Great Lockdown, is likely to produce permanent changes in how and where we do business: home versus office; electronically versus face-to- face.
The HP Reverb G2 is the world’s highest resolution VR headset among major vendorsi, delivering cutting-edge optics, inside-out tracking, spatial 3D audio, natural gestures, long-wearing comfort, and plug and play support for Windows Mixed Reality and SteamVR. “The power of collaboration is on full display with the HP Reverb G2, and alongside Valve and Microsoft, we engineered a no-compromises VR headset that’s immersive, comfortable, and compatible across Windows Mixed Reality and SteamVR,” said Spike Huang, vice president and global lead of VR, HP Inc. “The time is now for VR and the HP Reverb G2 brings high-quality VR to the masses with more immersion for gamers, interactive experiences for creators, increased engagement for collaboration, and higher retention rates for education and training.”
What happened Shares of PC and printers maker HP (NYSE: HPQ) -- the artist formerly known as Hewlett-Packard -- are down 12.4% as of 11:05 a.m. EDT despite last night's report of a big earnings beat.
Investors once again had to confront the difficult economic realities of the coronavirus pandemic, with 2.1 million more first-time claims for unemployment benefits weighing on market sentiment. For tech giant HP (NYSE: HPQ), the news wasn't as good as many investors had hoped.
Yahoo Finance’s Brian Sozzi and Alexis Christoforous discuss HP’s latest earnings report.
Shares of HP Inc. are off more than 10% in Thursday trading after the company reported earnings that showed growth in notebooks but continued challenges in the printer business. The results prompted a downgrade from J.P. Morgan analyst Paul Coster, who lowered his rating to neutral from overweight and cut his price target by a buck to $20. "Mostly it is continued weakness in the printing business that should draw attention of the skeptics," he wrote. "For the bulls, the more disappointing fallout from this quarter is management's unsurprising decision to postpone use of leverage in an expanded share buy-back, as outlined in the previously-initiated 'Value Creation Plan.'" Coster said that it's "understandable" for HP to delay these planned leveraged buybacks due to heightened uncertainty, but he argued that there "isn't much reason to add to positions" through the end of the year without this catalyst, as HP is expected to face tough comparisons in its personal systems business during the second half of the year and sustained declines in printing. HP shares are down 26% over the past three months as the S&P 500 has added 3%.
The three major indexes closed in the green on Wednesday, as investors focused on economic recovery stemming from business activity rising across the country.
HP Inc. saw profits in its struggling printer business dip below the profits in PCs for the first time in at least five years, as most corporate offices have closed during the pandemic, and the next quarter is expected to be even worse for printing, once the company’s cash cow.
In his first Executive Decision segment of "Mad Money" Wednesday, Jim Cramer spoke with Enrique Lores, president and CEO of HP Inc. , the PC and printer maker that just posted a second-quarter earnings beat despite an 11% decline in revenue. Lores said it was a challenging quarter, but his team performed extremely well through the crisis. Lores said the work-from-home trend is likely here to stay in many industries.
Supply-chain and manufacturing disruptions due to the coronavirus outbreak hurt HP's (HPQ) second-quarter fiscal 2020 results.