HP Inc. Reports Mixed Q3 Results, Lowers Full-Year Outlook Amid Market Challenges

HP Inc. Tightens The Belt: Mixed Q3 Results And Cautious FY24 Outlook - HP (NYSE:HPQ)

HP Inc. HPQ shares are trading lower after it reported third-quarter results. Net revenue rose 2.4% Y/Y to $13.52 billion, beating the consensus of $13.38 billion. By segment, Personal Systems net revenue rose 5% Y/Y to $9.4 billion with a 6.4% operating margin, and Printing net revenue fell 3% Y/Y to $4.1 billion with an operating margin of 17.3%. In Personal Systems segment, total units increased by 1%, with Consumer PS units down 6% and Commercial PS units up 6%. Adjusted operating margin contracted 70 bps Y/Y to 8.1% in the quarter. Adjusted EPS declined 3% Y/Y to $0.83, missing the street view of $0.86. Operating cash flow stood at $1.4 billion (+46% Y/Y), and free cash flow came in at $1.3 billion (+50% Y/Y) in the quarter. The company exited the quarter with gross cash of $2.9 billion, including cash and equivalents of $2.8 billion. Dividend & Buyback: The company returned $0.9 billion to shareholders in the form of dividends and share repurchases in the quarter. HP's board increased its share repurchase authorization to a total of $10 billion. Outlook: For the fourth quarter, HP expects adjusted EPS of $0.89 -$0.99 vs. consensus of $0.95. For FY24, the company tighetened its outlook for adjusted EPS to $3.35 - $3.45 vs. consensus of $3.45 (prior view $3.30 - $3.60). Investors can gain exposure to the stock via 3D Printing (The) ETF PRNT and Affinity World Leaders Equity ETF WLDR. Price Action: HPQ shares are down 2.16% at $34.01 premarket at the last check Thursday. Image via Shutterstock Read Next: Jim Cramer Says 'Real Deal Acceleration' As Salesforce's Benioff Flaunts 'Unstoppable' Growth -- But Here's Why This Analyst Prefers To Stay On Sidelines Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

HP slips after Q3 EPS falls short, lowers full-year EPS forecast

HP (NYSE:HPQ) slipped 3% during early post-market trading after its third quarter fiscal 2024 financial results featured less-than-expected earnings per share. For the quarter ended July 31, HP reported adjusted earnings per share of $0.83, which was less than the consensus estimate of $0.86. Its revenue for the quarter totaled $13.52B, which was more than the estimate of $13.36B. For the quarter in progress, HP expects earnings per share of $0.945, which is nearly in line with the estimate of $0.95. However, for the full fiscal year, which runs from November 2023 through October 2024, HP lowered its earnings per share to range from $3.35 to $3.45, versus its prior forecast of $3.30 to $3.60. The consensus estimate called for full-year earnings per share of $3.45. "We are pleased with our return to revenue growth and proud of the innovations delivered in the quarter, including the launch of our next-generation AI PC lineup," said HP CEO and President Enrique Lores. "We remain focused on our strategic plan and will prioritize opportunities that drive long-term profitable growth, while taking decisive action to navigate a dynamic environment." HP expects to generate free cash flow ranging from $3.1B to $3.6B for fiscal 2024. HP also announced it has increased its share repurchase plan to $10B.

HP shares slip as Q3 earnings miss estimates By Investing.com

HP Inc (NYSE:HPQ) reported third-quarter earnings that fell short of analyst expectations, sending shares down 2.3% in after-hours trading. The computer and printer maker's revenue, however, surpassed estimates as it returned to growth. HP reported adjusted earnings per share of $0.83 for the quarter ended July 31, missing the analyst consensus of $0.86. Revenue came in at $13.52 billion, up 2.4% YoY and above the $13.37 billion analysts expected. The company's Personal Systems segment, which includes PCs, saw revenue rise 5% YoY to $9.4 billion. Printing revenue declined 3% to $4.1 billion. "We are pleased with our return to revenue growth and proud of the innovations delivered in the quarter, including the launch of our next-generation AI PC lineup," said Enrique Lores, President and CEO of HP Inc. For the fourth quarter, HP forecasts adjusted EPS between $0.89 and $0.99, compared to the $0.95 analyst estimate. The company narrowed its full-year 2024 adjusted EPS guidance to $3.35-$3.45, with the midpoint slightly below the $3.45 consensus. HP generated $1.3 billion in free cash flow during the quarter and returned $0.9 billion to shareholders through share repurchases and dividends. The company also increased its share repurchase authorization to $10 billion.