- HP Inc. updated its full-year adjusted earnings per share (EPS) forecast to $3.35 to $3.45, down from the previous range of $3.30 to $3.60. Analysts estimated $3.45.
- The forecast for free cash flow remains unchanged at $3.1 billion to $3.6 billion. Analysts estimated $3.14 billion.
- For the fourth quarter, HP expects adjusted EPS between 89 cents and 99 cents, close to the analyst estimate of 95 cents.
- In the third quarter, HP reported:
- Adjusted EPS of 83 cents, compared to 86 cents last year, and falling short of the 86 cents estimated.
- Net revenue of $13.52 billion, a 2.4% increase from last year, beating the $13.37 billion estimate.
- Personal systems revenue of $9.37 billion, a 4.9% rise year-over-year, exceeding the $9.15 billion estimate.
- Printing revenue of $4.14 billion, a 2.8% drop year-over-year, missing the $4.25 billion estimate.
- An adjusted operating margin of 8.1%, down from 8.8% last year, and below the 8.6% estimate.
- Free cash flow of $1.3 billion, a 44% increase year-over-year, but below the $1.42 billion estimate.
- CEO Enrique Lores emphasized the company’s focus on its strategic plan and commitment to prioritizing opportunities that drive long-term profitable growth, while adapting to a dynamic environment.
- HP Inc. has increased its share buyback authorization to a total of $10 billion.
Hewlett Packard Co on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely monitoring Hewlett Packard Co (HP Inc.). In a recent report titled “HP Inc.: Dominance of Personal Systems & Print Business & Other Major Drivers,” Baptista Research highlighted that HP Inc.’s Q2 2024 earnings were below expectations, with a 1% decline in net revenue. However, there were positive signs, such as Personal Systems returning to growth after eight quarters, indicating market stabilization. Non-GAAP operating profit grew by 2%, and non-GAAP EPS increased by 4% year-over-year.
In another report by Baptista Research titled “HP Inc: Can Artificial Intelligence (AI) Enabled PCs Drive Phenomenal Growth In The Future? – Major Drivers,” the analysis focused on HP Inc.’s solid performance in the first quarter of fiscal year 2024 amid a challenging external environment affecting industry demand. The net revenue experienced a slight 4% decline year-over-year, marking the third consecutive quarter of slower revenue decrease, suggesting potential market stabilization efforts. The reports provide valuable insights for investors evaluating HP Inc.’s future prospects.
A look at Hewlett Packard Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Hewlett Packard Co shows a strong overall outlook for the long term. With a high Resilience score of 5, the company demonstrates its robustness in facing challenges and maintaining stability. This is further supported by a Momentum score of 5, indicating positive growth trends for the future. Additionally, the company scores well on the Dividend factor with a score of 4, highlighting its commitment to rewarding shareholders. While the Growth score of 3 suggests moderate expansion potential, Hewlett Packard Co‘s overall rating remains positive for the future.
HP Inc. is a company that provides a wide range of imaging and printing systems, computing devices, and solutions for both businesses and homes on a global scale. Their product lineup includes printers, scanners, personal computers, storage solutions, and more. With a focus on innovation and technology, HP Inc. aims to meet the diverse needs of its customers while maintaining a strong presence in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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