Oil prices surge to two-week winning streak as Iran supply fears grip markets
HP Inc. is not seeing clear stabilization in the PC market. Sales of Microsoft Surface laptops and Apple laptops continue to compete aggressively for consumers, while HP still dominates the printer market, which has seen declining demand over time. The company has surprised in the past two quarters. Sales are expected to rise 6.6%, while earnings are projected to increase only 0.4%. Analysts have trimmed estimates over the past 90 days and again over the past week. HP also produces some servers used in data centers, although it is not as dominant as Dell, Super Micro, or Vertiv Holdings. While another surprise is possible, the company is not currently on the radar.
Oracle continues to push aggressively into AI and cloud services. Sales are expected to increase 19.6%, while earnings are projected to grow 16%. Analyst estimates have remained fairly steady. Last quarter the company posted a 38% surprise, largely driven by data center expansion. Another strong surprise is possible. The key will be whether operating margins expand, since earnings growth is not currently outpacing sales growth. The company continues to invest heavily in AI initiatives and data center infrastructure, which could support longer-term growth.
Adobe has been rolling out generative AI tools that are beginning to support growth. In the fourth quarter the company delivered a strong earnings beat. For the first quarter, sales are expected to rise 9.9% and earnings are projected to grow 15.6%. Analyst revisions have been positive over the past 90 days, and in the past month alone 23 analysts have raised their estimates. While overall sales and earnings growth are not yet strong enough for inclusion in portfolios, the company’s outlook is improving and momentum in analyst revisions is a positive signal.