- HP Inc. projects adjusted EPS for the fourth quarter between 87 cents and 97 cents, with the consensus estimate at 91 cents.
- The company forecasts annual free cash flow between $2.6 billion and $3 billion.
- For the third quarter, HP reported an adjusted EPS of 75 cents, down from 84 cents last year, but higher than the estimate of 74 cents.
- Net revenue for the third quarter was $13.93 billion, a 3.1% increase from last year, surpassing the estimate of $13.74 billion.
- Personal systems revenue increased by 6% year-over-year to $9.93 billion, exceeding the estimate of $9.72 billion.
- Printing revenue declined by 3.8% year-over-year to $3.99 billion, slightly below the estimate of $4.01 billion.
- The adjusted operating margin was 7.1%, lower than last year’s 8.2%, and below the estimate of 7.21%.
- Free cash flow rose by 15% year-over-year to $1.5 billion, outperforming the estimate of $1.22 billion.
- HP repurchased $150 million in common stock, equivalent to 5.5 million shares.
- CFO Karen Parkhill expressed confidence in the PC market, driven by the Windows 11 refresh and AI PC adoption.
- HP’s outlook considers additional costs due to U.S. trade-related regulations and associated mitigation measures.
Hewlett Packard Co on Smartkarma
Analysts on Smartkarma are buzzing about Hewlett Packard Co, with Baptista Research highlighting the expansion of Personal Systems with AI PCs as the clear way forward for HP Inc. Their report on the second quarter of fiscal year 2025 shows a mixed picture, reflecting growth and challenges. HP has impressed with a 5% year-over-year revenue increase in constant currency, driven by strong performance in the Personal Systems segment, especially in the commercial sector.
Vincent Fernando, CFA further supports this sentiment, emphasizing HP’s resilient commercial PC growth and the expansion of AI PC penetration through NVIDIA chips like the ZGX AI Station. This signals a significant advancement in PC capabilities and value. The industry outlook perspective highlighted by Vincent Fernando underscores the emergence of new NVIDIA Blackwell-powered workstations, paving the way for AI PCs to deliver substantial improvements in value and performance.
A look at Hewlett Packard Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Hewlett Packard Co has a positive long-term outlook. With high scores in Dividend, Resilience, and Momentum, the company is showing strength in these areas. A score of 4 in Dividend indicates the company’s ability to provide consistent returns to investors through dividends. Additionally, scores of 4 in both Resilience and Momentum suggest that Hewlett Packard Co is well-positioned to weather market challenges and maintain positive market momentum.
While Hewlett Packard Co scored lower in Value and Growth with scores of 0 and 3 respectively, the overall outlook remains favorable. The company, known for providing imaging and printing systems, computing systems, and solutions worldwide, continues to demonstrate its stability and ability to generate returns for shareholders. Investors may find Hewlett Packard Co to be a reliable choice for long-term investment based on its strong performance across various Smartkarma Smart Scores factors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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