Mizuho Securities Previews Hewlett-Packard's Q4 Results

Hewlett-Packard Company (NYSE: HPQ) will report its fourth-quarter results on Tuesday after market close. Abhey Lamba of Mizuho Securities detailed what to expect in the company's report.

“The printing business is facing headwinds and services won't see improvement near-term,” Lamba wrote in a note to clients on Tuesday. “For outlook, we expect management to reiterate its forecast shared in mid-October.”

Lamba adds that the company already reiterated its fourth-quarter guidance in mid-October, so results should largely be in-line with a slight revenue upside from PCs. The company could also gain from strong cost management and restructuring initiatives, resulting in a strong cash flow and improvement in net cash.

Lamba notes that Hewlett-Packard's Printing and Services segment should continue posting “lackluster performances” and continues facing headwinds, despite “solid” PC sales expectations. In addition, the company's server and emerging storage businesses are expected to post “strong” results, but overall the segment is “too small to move the needle.”

“Overall, expectations for Hewlett-Packard's other segments are muted,” Lamba wrote.

Looking forward to fiscal 2015, the analyst expects the company to reiterate its view of flat year-over-year sales.

Lamba is expecting Hewlett Packard to earn $1.05 per share on revenue of $28.866 billion.

Shares are Neutral rated with a $40 price target as Lamba believes there is limited upside at current levels given the company's multi-year restructuring initiatives.