HP Inc HPQ stock traded lower Wednesday after the company reported fiscal fourth-quarter financial results and issued fiscal first-quarter adjusted EPS guidance below estimates.On Tuesday, HP reported revenue of $14.05 billion (versus $13.82 billion a year ago), which beat the analyst consensus estimate of $13.99 billion. The EPS of $0.93 was in line with the analyst consensus estimate.Also Read: Apple Faces Modest Growth As IDC Forecasts Smartphone Market ReboundHP expects first-quarter adjusted EPS of $0. ...

Core Viewpoint - HP Inc. reported lower-than-expected fourth-quarter fiscal 2024 results, with non-GAAP earnings per share (EPS) of 93 cents, missing the Zacks Consensus Estimate by 1.1% and showing a year-over-year increase of 3.3% [1][3] Financial Performance - HPQ's revenues increased by 1.7% year over year to $14.06 billion, slightly missing the Zacks Consensus Estimate by 0.36% [2] - The Personal Systems (PS) segment, accounting for 68.2% of net revenues, generated $9.6 billion, reflecting a 2.1% year-over-year increase [4] - The printing business revenues, making up 31.7% of net revenues, rose by 0.8% year over year to $4.45 billion, marking the first growth in 12 quarters [6] Segment Analysis - Total PC units sold increased by 1% year over year, driven by a 4% rise in Commercial PS shipments, while Consumer PS shipments declined by 3% [5] - Consumer Printing net revenues improved by 3%, while Commercial Printing net revenues decreased by 1% [7] - The PS segment's non-GAAP operating margin contracted by 100 basis points to 5.7% due to higher commodity costs and strategic investments [8] - The Printing division's non-GAAP operating margin expanded by 70 basis points to 19.6% [9] - Overall, HP's non-GAAP operating margin from continuing operations contracted by 50 basis points to 8.5% [10] Cash Flow and Guidance - At the end of the fiscal fourth quarter, HPQ had cash and cash equivalents of $3.25 billion, down from $3.73 billion in the previous quarter [11] - The company generated $1.62 billion from operational activities and $1.5 billion in free cash flow during the quarter [11] - For Q1 fiscal 2025, HPQ estimates non-GAAP EPS between 70 cents and 76 cents, with the Zacks Consensus Estimate at 87 cents [12] - For fiscal 2025, the expected non-GAAP EPS range is $3.06 to $3.36, with a consensus estimate of $3.59 [12] - HPQ anticipates free cash flow between $3.2 billion and $3.6 billion for fiscal 2025 [13] Stock Performance - Following the disappointing fourth-quarter results, HPQ shares fell by 7.44% in after-market trading on November 26 [3] - Year-to-date, HPQ shares have gained 30%, outperforming the Zacks Computer - Micro Computers industry's growth of 22.2% [3]

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Financial Data and Key Metrics Changes - Revenue increased by 2% year-over-year for the second consecutive quarter, with non-GAAP EPS growing 3% to $0.93 [11][12][31] - Gross margin remained flat year-over-year at 21.4%, while non-GAAP operating profit was $1.2 billion [32][33] - Free cash flow for the fiscal year was $3.3 billion, with nearly 100% returned to shareholders [23][40] Business Line Data and Key Metrics Changes - Personal Systems revenue grew 2% year-over-year, driven by strong commercial unit sales and market share gains [19][33] - Print revenue increased by 1% year-over-year, with strong performance in supplies and industrial graphics [22][35] - AI PC units accounted for over 15% of shipments in Q4, expected to rise to 25% in FY'25 [20][41] Market Data and Key Metrics Changes - Revenue growth was seen across all regions, with the Americas and EMEA growing 2% and APJ growing 3% in constant currency [32] - The overall PC market is projected to grow mid-single digits in FY'25, with commercial segments expected to grow faster than consumer segments [41][72] Company Strategy and Development Direction - The company is focusing on AI-powered capabilities and software, aiming to transition from a hardware-centric model to an experience-led organization [26][28] - There is a strategic emphasis on capturing profitable growth in premium consumer and gaming segments, alongside a commitment to sustainability [22][28] - The Future Ready strategy aims to enhance operational capabilities and supply chain resilience while driving innovation [24][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on new opportunities, particularly in the commercial space, as customer expectations evolve with AI and flexible work [25][30] - The company anticipates a stronger second half in FY'25, driven by normal seasonality and increased AI PC penetration [41][75] Other Important Information - The annual dividend was raised by 5% to $1.16 per share, marking the ninth consecutive annual increase [47] - The company is committed to returning approximately 100% of free cash flow to shareholders, contingent on maintaining a gross leverage ratio under 2x EBITDA [29][46] Q&A Session All Questions and Answers Question: First quarter EPS guidance - Management noted that Q1 EPS is typically lower due to seasonal volume declines and the timing of stock compensation expenses [50][51] Question: Future Ready transformation plan and free cash flow - Management indicated that free cash flow is expected to grow in line with earnings, with continued improvements in working capital [52][53] Question: Print operating margins - Management expects to maintain print operating margins in the upper half of the 16% to 19% range, focusing on profitability and share gains [56][57] Question: Competitive pressures and market share expectations - Management aims to grow share in profitable categories, emphasizing a conservative approach to setting expectations [59][60] Question: AI PC units and implications for ASPs and margins - AI PCs are expected to drive improvements in average selling prices, with a significant impact anticipated in the coming years [62][63] Question: Supply chain positioning amid potential tariffs - Management expressed confidence in their supply chain resilience and ability to adapt to geopolitical changes [64][66] Question: Print market dynamics - Management expects consumer print to decline while contractual office segments may perform better, focusing on profitable growth opportunities [98]

For the quarter ended October 2024, HP (HPQ) reported revenue of $14.06 billion, up 1.7% over the same period last year. EPS came in at $0.93, compared to $0.90 in the year-ago quarter.The reported revenue represents a surprise of -0.36% over the Zacks Consensus Estimate of $14.11 billion. With the consensus EPS estimate being $0.94, the EPS surprise was -1.06%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next mo ...

HP (HPQ) came out with quarterly earnings of $0.93 per share, missing the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.06%. A quarter ago, it was expected that this personal computer and printer maker would post earnings of $0.86 per share when it actually produced earnings of $0.83, delivering a surprise of -3.49%.Over the last four quarters ...

Group 1 - The company's shares fell 8% in extended trading after the current-quarter outlook missed analysts' projections, despite better-than-expected fiscal fourth-quarter results [1][4] - Fourth-quarter revenue increased by 1.7% year-over-year to $14.1 billion, exceeding analyst consensus [1] - Net income for the fourth quarter was $900 million, or 93 cents per share, compared to $1 billion, or 97 cents per share, a year ago, and above estimates [1] Group 2 - The Personal Systems division, which includes PCs, generated revenue of $9.6 billion, a 2% increase [2] - The Printing division reported revenue of $4.5 billion, which is 1% higher than the previous year [2] Group 3 - For the current quarter, the company forecasted earnings per share (EPS) of 57 cents to 63 cents, below the analyst consensus of 72 cents [3] - The full-year EPS estimate of $3.06 to $3.36 exceeded expectations [3] Group 4 - The company announced a 5% increase in its quarterly dividend to approximately 29 cents per share [4] - Despite the drop in shares, they were up 30% for the year through Tuesday's close [4]

1501 Page Mill Road Palo Alto, CA 94304 hp.com Editorial contacts HP Inc. Media Relations MediaRelations@hp.com HP Inc. Investor Relations InvestorRelations@hp.com News Release EXHIBIT 99.1 HP Inc. Reports Fiscal 2024 Full Year and Fourth Quarter Results PALO ALTO, Calif. – Nov. 26, 2024 (GLOBE NEWSWIRE) – HP (NYSE: HPQ) • Fiscal 2024 GAAP diluted net earnings per share ("EPS") of $2.81, above the previously provided outlook of $2.62 to $2.72 per share • Fiscal 2024 non-GAAP diluted net EPS of $3.38, within ...

PALO ALTO, Calif., Nov. 26, 2024 (GLOBE NEWSWIRE) -- HP (NYSE: HPQ) Fiscal 2024 GAAP diluted net earnings per share ("EPS") of $2.81, above the previously provided outlook of $2.62 to $2.72 per shareFiscal 2024 non-GAAP diluted net EPS of $3.38, within the previously provided outlook of $3.35 to $3.45 per shareFiscal 2024 net revenue of $53.6 billion, down 0.3% from the prior-year periodFiscal 2024 net cash provided by operating activities of $3.7 billion, free cash flow of $3.3 billionFiscal 2024 returned ...

HP (HPQ) will report fiscal fourth-quarter earnings after the bell Tuesday, and analysts are taking a wait-and-see approach with the maker of PCs and printers. All six brokers tracked by Visible Alpha have a "hold" or equivalent rating for HP, with a consensus price target of $34.83. That's about 11% lower than the stock's price of $39.21 soon after markets opened Monday. Shares of HP have gained 30% in 2024.  Morgan Stanley described its outlook as "tactically cautious into earnings," while maintaining it ...