Core Insights - HP Inc. emphasizes the critical importance of securing hardware and firmware throughout the device lifecycle to enhance cybersecurity posture [1][4][5] Group 1: Cybersecurity Concerns - A global study involving over 800 IT and security decision-makers and 6000 work-from-anywhere employees reveals that 81% of ITSDMs believe hardware and firmware security should be prioritized to prevent exploitation of vulnerable devices [2] - Despite this, 68% of ITSDMs report that investment in hardware and firmware security is often neglected in the total cost of ownership, leading to significant security challenges and inefficiencies [2][3] Group 2: Device Lifecycle Findings - Supplier Selection: 34% of ITSDMs indicate that a supplier has failed a cybersecurity audit in the past five years, with 18% terminating contracts due to serious failures [3] - Onboarding and Configuration: 53% of ITSDMs acknowledge that BIOS passwords are either shared too broadly or not strong enough, and they rarely change these passwords throughout the device's life [3] - Ongoing Management: Over 60% of ITSDMs do not promptly apply firmware updates, with 57% experiencing fear of making updates [3][9] - Monitoring and Remediation: Organizations incur an estimated $8.6 billion annually due to lost and stolen devices, with one in five employees reporting loss or theft of their devices [3][10] - Second Life and Decommissioning: 47% of ITSDMs cite data security concerns as a major barrier to reusing or recycling devices, contributing to an e-waste epidemic [3][12] Group 3: Recommendations for Improvement - HP Wolf Security recommends that organizations ensure collaboration between IT, security, and procurement teams during the supplier selection process to validate security claims [18] - For onboarding, organizations should seek solutions that enable secure zero-touch onboarding and management of firmware settings [18] - Ongoing management should focus on tools that allow remote monitoring and rapid deployment of firmware updates to minimize vulnerabilities [18] - Monitoring and remediation strategies should include capabilities for remote data erasure and audit log monitoring to identify security risks [18] - For second life and decommissioning, organizations should prioritize devices that can securely erase sensitive data to facilitate safe disposal [18]

Core Insights - HPQ Silicon Inc. is advancing its proprietary Fumed Silica Reactor (FSR) process, aiming to disrupt the fumed silica market with a cost-effective and high-efficiency solution [1][3][10] - PyroGenesis Inc. has completed essential refractory conditioning work on the pilot system, which is crucial for consistent fumed silica production [2][6] - The FSR Pilot Plant is designed to ensure product quality and optimize the production process, transitioning from laboratory-scale to industrial-grade output [4][5][10] Company Developments - The initial processing material tests for the FSR are set to begin in December 2024, marking a significant step towards commercial validation [2][7] - The program aims to produce a minimum of 200 kilograms of commercial-grade fumed silica samples for extensive testing and validation [8][10] - The FSR technology is expected to achieve full-capacity operations, producing approximately 161 kilograms per day, translating to an annual output of 50,000 kilograms [10] Technology and Production Goals - The FSR development program addresses challenges in scaling up production from laboratory to industrial levels, focusing on maintaining critical physical properties and rheological characteristics [5][8] - The overarching goal includes producing high-purity, food- and pharma-grade fumed silica with a surface area of 300 m²/g [9][10] - Continuous refinement of operational processes is a priority to ensure high-quality material production for HSPI's clients [6][9]

Group 1 - Value stocks are scarce in the current market, with a post-Trump election rally leading to higher multiples across nearly all industries [1] - The macro view suggests that markets may be due for a correction of 10-20% [1] - The analyst has extensive experience in technology companies and has been involved with seed-round startups, providing insights into current industry themes [1] Group 2 - The analyst has a beneficial long position in HPQ shares through various financial instruments [2] - The article reflects the analyst's personal opinions and is not influenced by compensation from any company mentioned [2]

Core Viewpoint - The investment outlook for HP Inc. (NYSE: HPQ) remains uncertain due to weak PC demand and declining margins in the print segment [1] Group 1: Company Analysis - The previous investment stance on HP Inc. was a hold rating, reflecting concerns over growth prospects [1] - The company's print segment is experiencing margin pressures, which could impact overall profitability [1] Group 2: Investment Strategy - The investment approach focuses on long-term investments while also considering short-term opportunities to identify alpha [1] - Emphasis is placed on bottom-up analysis to assess the fundamental strengths and weaknesses of individual companies [1] - The target investment duration is medium to long-term, aiming to find companies with solid fundamentals and growth potential [1]

Data courtesy of Print my Leg Earnings Announcement November 26, 2024 | Q4 FY24 Forward-looking Statements This presentation contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries ("HP") which may differ materially from those expressed orimplied by such forward- ...

Core Viewpoint - HP Inc reported fiscal fourth-quarter results that beat revenue expectations but issued first-quarter adjusted EPS guidance below analyst estimates, leading to a decline in stock price [1][2]. Financial Performance - HP's revenue for the fourth quarter was $14.05 billion, an increase from $13.82 billion year-over-year, surpassing the analyst consensus estimate of $13.99 billion [1]. - The EPS for the fourth quarter was $0.93, aligning with analyst expectations [1]. - The print segment generated $4.5 billion in revenue, exceeding expectations, while personal systems (PS) revenue was $9.6 billion, slightly below consensus [6][13]. Guidance and Projections - For the first quarter, HP expects adjusted EPS of $0.70 – $0.76, below the $0.85 estimate, and for fiscal 2025, adjusted EPS is projected at $3.45 – $3.75, compared to the $3.60 estimate [2][7]. - HP anticipates full-year revenue growth in fiscal 2025 driven by mid-single-digit increases in PC units and seasonal recovery [7]. Segment Performance - Print margins improved to 19.6% in the fourth quarter, exceeding both internal and external forecasts, with expectations to remain at the higher end of the 16% – 19% range in fiscal 2025 [8][14]. - PS margins are expected to rise to the upper half of the 5% – 7% range, supported by improved pricing strategies and volume leverage [8]. Market Dynamics - The company faces near-term challenges in the PC market due to competitive pricing and higher memory costs, but remains optimistic about a recovery in PC units and increased adoption of AI PCs by enterprise customers in fiscal 2025 [5][11]. - Enterprise PC replacement cycles and the end-of-life of Windows 10 in 2025 are seen as long-term growth drivers [9]. Analyst Ratings - JP Morgan maintained an Overweight rating with a price target of $40, down from $41, while Goldman Sachs reiterated a Neutral rating with a price target of $38, up from $35 [3][4]. - Analysts project first-quarter revenue of $13.47 billion and adjusted EPS of $0.75 [12][18]. Stock Performance - Following the earnings report, HPQ stock declined by 12.5%, trading at $34.22 [19].

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]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [2][3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4][5] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

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]

Core Insights - HP reported revenue of $14.06 billion for the quarter ended October 2024, reflecting a year-over-year increase of 1.7% but a slight miss of 0.36% against the Zacks Consensus Estimate of $14.11 billion [1] - Earnings per share (EPS) for the quarter was $0.93, up from $0.90 in the same quarter last year, but fell short of the consensus estimate of $0.94 by 1.06% [1] Financial Performance Metrics - Days in accounts payable increased to 138 days, exceeding the average estimate of 124.24 days from two analysts [3] - Net revenue from Personal Systems - Commercial PS was $6.52 billion, below the average estimate of $6.71 billion, representing a year-over-year increase of 5% [3] - Net revenue from Personal Systems - Consumer PS was $3.07 billion, slightly above the average estimate of $3 billion, but showed a decline of 3.6% year-over-year [3] - Total net revenue from Personal Systems was $9.59 billion, compared to the average estimate of $9.71 billion, with a year-over-year increase of 2.1% [3] - Net revenue from Printing - Supplies reached $2.87 billion, surpassing the average estimate of $2.73 billion, with a year-over-year increase of 1.6% [3] - Net revenue from Printing - Commercial Printing was $1.26 billion, exceeding the average estimate of $1.21 billion, reflecting a significant year-over-year increase of 18.6% [3] - Net revenue from Printing - Consumer Printing was $325 million, above the average estimate of $299.84 million, but showed a substantial decline of 39% year-over-year [3] - Total net revenue from Printing was $4.45 billion, compared to the average estimate of $4.25 billion, with a year-over-year increase of 0.8% [3] - Earnings from operations in Printing were $874 million, exceeding the average estimate of $769.47 million [3] - Earnings from operations in Personal Systems were $550 million, below the average estimate of $638.32 million [3] Stock Performance - HP's shares have returned +5% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]