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H-P Earnings: What to Watch

When Hewlett-Packard Co. reported its fiscal 2015 second quarter earnings in May, the company said its coming break up into two publicly traded companies, HP Inc. and Hewlett-Packard Enterprise, would eventually cost billions of dollars. But as the break up continues, there could be some other near-term costs.

If the company is distracted, or executing poorly on its breakup, that could show up in today’s earnings. HP began the complex task of duplicating and then switching over IT systems during the July 4 weekend, and any massive glitches could prove to be a distraction for the company, as it struggles to reverse its fortunes.

Weakness in the company’s core business and currency fluctuations are hurting the company too. With software, PC and...