- HP Inc projects its second-quarter adjusted earnings per share (EPS) to be between 75 cents and 85 cents, with the estimate at 85 cents.
- The company maintains its annual forecast for adjusted EPS between $3.45 and $3.75, versus the estimate of $3.59.
- HP’s yearly free cash flow forecast remains within the range of $3.2 billion to $3.6 billion.
- For the first quarter, HP reported an adjusted EPS of 74 cents, matching estimates but lower than the previous year’s 81 cents.
- Net revenue for the first quarter reached $13.50 billion, marking a 2.4% increase year-over-year, and surpassing the estimate of $13.38 billion.
- Personal systems revenue increased by 4.7% year-over-year to $9.22 billion, beating the estimate of $9.13 billion.
- Printing revenue declined by 2.4% from the previous year to $4.27 billion, slightly above the estimate of $4.26 billion.
- The company reported an adjusted operating margin of 7.3%, lower than last year’s 8.4% and the estimate of 7.45%.
- HP generated a free cash flow of $70 million in the first quarter.
- The company repurchased $100 million in common stock, equivalent to 2.7 million shares.
- HP CEO Enrique Lores highlights strong progress in the commercial business within Personal Systems and growth areas like AI PCs.
- CFO Karen Parkhill announced an increase in the Future Ready savings target from $1.6 billion to $1.9 billion by the end of fiscal year 2025.
Hewlett Packard Co on Smartkarma
Analysts at Baptista Research on Smartkarma have been closely covering Hewlett Packard Co, assessing its financial performance and strategic outlook. In their report titled “HP Inc.: Will The Growth in AI-Enabled PCs Catalyze Its Future Top-Line? – Major Drivers,” the analysts highlighted a 2% year-over-year revenue increase in the fourth quarter of 2024, with growth in both the Personal Systems and Print segments. A key point of interest was the 3% growth in non-GAAP EPS to $0.93, aligning with the company’s expectations.
In another report by the same analysts, titled “HP Inc.: A Mixed Financial Picture! – Major Drivers,” they discussed HP Inc.’s Q3 2024 earnings presentation, noting a modest 2% return to revenue growth after nine quarters. The growth was largely attributed to a strong performance in Personal Systems, encompassing both consumer and commercial segments. The analysts also observed a notable recovery in commercial PCs, indicating a stabilizing market for the company.
A look at Hewlett Packard Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
HP Inc., a leading provider of imaging and printing systems, computing devices, and services for both business and home users, has received a notably high Smartkarma Smart Score for Resilience, indicating a strong ability to weather market challenges and uncertainties. Additionally, the company has scored well in the Dividend category, showcasing its commitment to rewarding shareholders with consistent payouts.
While Hewlett Packard Co has received moderate scores in Growth and Momentum, suggesting steady progress and a decent level of market momentum, the Value score for the company is lower. Overall, HP Inc. appears to be well-positioned for long-term success based on its strong resilience, solid dividend performance, and decent growth and momentum ratings.
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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