Here's What Key Metrics Tell Us About HP (HPQ) Q1 Earnings

Financial Performance - For the quarter ended January 2025, HP reported revenue of $13.5 billion, reflecting a 2.4% increase year-over-year [1] - EPS for the quarter was $0.74, down from $0.81 in the same quarter last year [1] - The reported revenue matched the Zacks Consensus Estimate of $13.5 billion, resulting in a surprise of -0.01% [1] - The company experienced an EPS surprise of -1.33%, with the consensus EPS estimate being $0.75 [1] Key Metrics - Days in accounts payable increased to 139 days, compared to the average estimate of 125 days [4] - Days of sales outstanding in accounts receivable remained stable at 28 days, aligning with the average estimate of 28.5 days [4] - Days of supply in inventory rose to 72 days, exceeding the average estimate of 62 days [4] Segment Performance - Net revenue for Personal Systems - Commercial PS was $6.65 billion, matching the average estimate and showing a 9.9% increase year-over-year [4] - Net revenue for Personal Systems - Consumer PS was $2.58 billion, consistent with estimates but down 6.7% from the previous year [4] - Total net revenue for Personal Systems was $9.22 billion, slightly below the average estimate of $9.23 billion, representing a 4.7% year-over-year increase [4] - Net revenue from Printing - Supplies was $2.83 billion, slightly above the average estimate, but down 1.3% year-over-year [4] - Net revenue from Printing - Commercial Printing was $1.14 billion, below the average estimate and down 6.8% year-over-year [4] - Net revenue from Printing - Consumer Printing was $299 million, exceeding estimates and up 4.9% year-over-year [4] - Total net revenue from Printing was $4.27 billion, matching estimates but down 2.4% year-over-year [4] Operational Earnings - Earnings from operations in Printing were $810 million, surpassing the average estimate of $796.53 million [4] - Earnings from operations in Personal Systems were $507 million, below the average estimate of $528.38 million [4] Stock Performance - HP shares returned +3.7% over the past month, outperforming the Zacks S&P 500 composite, which declined by -2.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]