Wisconsin Chronicle

Post-split HP 2016 forecast on tap

Post-split HP 2016 forecast on tap

Wall Street is interested to hear from executives Tuesday of both companies that emerged from last month’s split of Hewlett-Packard, when its fiscal year financials are released after the market closes. Several other tech stocks prove worth watching, too.hp-headquarters

Hewlett-Packard. HP Inc. (HPQ) and Hewlett Packard Enterprise (HPE) began operating separately in November, but its last quarter and fiscal year, which ended Oct. 31, will be released later today. Analysts hope to get a sense of whether the split “is finally the spark” for the enterprise company, run by CEO Meg Whitman, to “go on a surge of M&A in 2016,” said FBR Capital Markets’ Daniel Ives. HPE shares are down nearly 8% since the split to $13.85, while shares in HPQ, which sells printers and PCs, is up more than 16% to $14.23.

GameStop. The video game retail chain posted third quarter earnings that missed Wall Street expectations, causing its stock to close Monday down 4% to $37.61. Shares fell 3.75% in early trading Tuesday. Sales of new games such as Halo 5: Guardians and Assassin’s Creed Syndicate did not sell as well as expected, the company said. Net income fell 11% to $57 million and comparable store sales fell 1%, short of the chain’s projections of 1% to 4% growth for the quarter. GameStop said its full year same-store sales would fall between a 2% to 6% increase.

Electronic Arts. The video game publisher saw its shares fall nearly 5% to $68.98 Monday after GameStop mentioned that sales of Star Wars Battlefront, which hit stores last week, were falling short of their forecast. Analysts, however, said that the it was too early to assess the game’s ultimate success. “There are a lot of days left in holiday shopping season, and although GameStop may not see its market share for Star Wars recover due to the ‘grandma effect,’ we are confident that other retailers will have sufficient supply of the EA game to allow grandmas all over the world to scratch another gift off of their holiday list,” said Wedbush Securities’ Michael Pachter.

Yahoo. CEO Marissa Mayer is faced with “a crisis of morale,” according to a Tuesday story in The Wall Street Journal. Concerns have escalated over the last week since an activist investor questioned the web media company’s plan to spinoff its stake in Alibaba. Shares closed Monday up 0.76% to $33.36.

Amazon. The e-tailing giant announced a deal Tuesday with JetBlue to provide free Wi-Fi on more than 150 of its planes. Elsewhere, the Vice Media-owned tech news site Motherboard said that Amazon is testing an air freight service in Ohio. “Amazon Prime Air has a nice ring to it,” said Robert W. Baird & Co.’s Colin Sebastian. The management firm last month forecasted that Amazon would create a third-party logistics service. Shares closed Monday up 1.58% to $678.99.


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