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HP reports soft Q1 guidance; shares tumble in afterhours trading

Published 27/11/2024, 08:44 am
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Investing.com - HP reported Tuesday fiscal four-quarter earnings that topped Wall Street estimates, but the PC giant's weaker-than-expected guidance for the current quarter sent its stock tumbling.

HP Inc (NYSE:HPQ) shares fell more than 7% in after-hours trade following the report.

HP Inc announced Q4 adjusted earnings per share of $0.93 on revenue of $14.1B. Analysts polled by Investing.com anticipated EPS of $0.93 on revenue of $13.99B.

Personal systems, which includes personal computers and makes up the bulk of overall growth, saw net revenue rise 9% to $11.5B year over year.

Printing net revenue rose 1% to $4.5B, while personal systems revenue rose 2% to $9.6B in Q4 year on year.

For Q1, the company forecast adjusted EPS in a range of $0.70 to $0.76, well short of analyst estimates of $0.86.

Looking further ahead, the company guided adjusted EPS for fiscal 2025 in a range of $3.45 to $3.75 and expects to generate free cash flow in the range of $3.2B to $3.6B. 

The company hiked its dividend by 5% to $0.2894 per share.

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