- HP Inc’s Q2 net revenue reached $12.80 billion, slightly down by 0.8% year-over-year, but exceeded the estimate of $12.6 billion.
- Personal systems revenue was strong at $8.43 billion, a 3.1% increase year-over-year, surpassing the estimate of $8.28 billion.
- Printing revenue fell to $4.37 billion, a 7.8% decrease year-over-year, slightly below the estimate of $4.38 billion.
- Adjusted earnings per share (EPS) came in at 82 cents, beating both the previous year’s 79 cents and the estimate of 81 cents.
- Adjusted operating margin improved to 8.8%, up from 8.6% last year and above the estimate of 8.75%.
- Free cash flow remained steady at $500 million year-over-year, but missed the estimate of $624.4 million.
- HP repurchased $100 million worth of common stock, totaling 3.5 million shares.
- Third Quarter Forecast:
- Adjusted EPS is expected to be between 78 cents and 92 cents, compared to the estimate of 85 cents.
- Year Forecast:
- Adjusted EPS forecast updated to a range of $3.30 to $3.60, previously $3.25 to $3.65, with an estimate of $3.42.
- Free cash flow is expected to be between $3.1 billion and $3.6 billion, in line with the estimate of $3.13 billion.
- CEO Enrique Lores commented, “As the market recovers and new AI PCs are introduced, we are well positioned to drive profitable growth across our business.”
Hewlett Packard Co on Smartkarma
Smartkarma, the independent investment research network, boasts analyst coverage of Hewlett Packard Co by top independent analysts like Baptista Research. In their insightful reports, Baptista Research dives into key drivers shaping HP Inc.’s future. One report, titled “HP Inc: Can Artificial Intelligence (AI) Enabled PCs Drive Phenomenal Growth In The Future? – Major Drivers” discusses HP Inc.’s solid performance in the face of a volatile market, with net revenue showing signs of stabilization despite a slight decline. Another report, “HP Inc.: The Dark Horse of Tech Stocks? – Major Drivers,” highlights HP Inc.’s resilience in challenging macroeconomic conditions, emphasizing the company’s strategic focus on cost reduction, growth in high-value segments, and strong commitment to shareholders.
A look at Hewlett Packard Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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 Smartkarma’s Smart Scores, Hewlett Packard Co shows a positive long-term outlook. With strong scores in Dividend, Growth, Resilience, and Momentum, the company is positioned well in various key aspects. HP Inc. is known for providing imaging and printing systems, computing devices, and solutions for both business and personal use on a global scale.
With high scores in key areas such as Dividend, Growth, Resilience, and Momentum, Hewlett Packard Co is demonstrating favorable prospects for the future. The company’s range of products, including printers, computers, and storage solutions, coupled with its global presence, solidifies its position in the market and signals potential for continued success.
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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