- HP Inc. forecasts adjusted Earnings Per Share (EPS) for the fiscal year between $2.90 and $3.20, which is below the expectation of $3.32.
- The company predicts free cash flow of $2.8 billion to $3 billion.
- For the first quarter, HP anticipates adjusted EPS between 73 cents and 81 cents, against an estimate of 78 cents.
- In the fourth quarter, HP reported an adjusted EPS of 93 cents, slightly missing last year’s 96 cents but exceeding the estimate of 92 cents.
- Net revenue for the fourth quarter reached $14.64 billion, a 4.2% increase year-over-year, surpassing the $14.53 billion estimate.
- Personal systems revenue saw a rise of 7.9% to $10.35 billion, exceeding the expected $10.3 billion.
- Printing revenue decreased by 4.2% to $4.27 billion, slightly above the $4.26 billion estimate.
- The adjusted operating margin dropped to 8%, compared to 8.8% last year, and against an 8.06% estimate.
- Free cash flow maintained at $1.5 billion, matching last year, and above the estimate of $1.44 billion.
- HP repurchased common stock worth $500 million, totaling 18.3 million shares.
- The company announced a major cost-saving initiative aiming for annualized savings of at least $1 billion by fiscal 2028.
- Restructuring and other charges are expected to be around $650 million.
- HP plans to reduce its global workforce by 4,000 to 6,000 employees.
- The quarterly dividend will increase to 30 cents per share from 28.94 cents, closely matching the estimated 30.4 cents.
- HP’s CFO, Karen Parkhill, highlighted company efforts to combat cost challenges and investment in AI to enhance innovation and productivity.
- HP’s outlook takes into account additional costs arising from current U.S. trade-related regulations.
Hewlett Packard Co on Smartkarma
Analyst coverage of Hewlett Packard Co on Smartkarma provides valuable insights into the company’s performance and future prospects. Baptista Research‘s reports highlight HP Inc.’s progress in strategic goals, with a 3% year-over-year revenue increase driven by strong performance in the Personal Systems segment. However, challenges in the Print segment indicate competitive pricing pressures that the company is actively addressing through strategic adjustments and cost management.
Another report from Vincent Fernando, CFA, emphasizes HP’s commercial PC growth and the expansion of AI PC capabilities through NVIDIA chips like the ZGX AI Station. The findings suggest a positive outlook for HP, with resilient demand in the commercial sector and advancements in AI PC technology signaling a promising future for the company.
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
HP Inc., a global provider of imaging and printing systems, computing systems, mobile devices, solutions, and services, has received a mixed bag of Smart Scores for its long-term outlook. With a substantial Dividend score of 4 indicating strong returns to shareholders, HP Inc. shows promise in providing consistent dividends to investors. Pairing this with above-average scores in Resilience and Momentum at 4, the company demonstrates solid stability and market performance potential.
However, HP Inc. falls short in the Value category with a score of 0, suggesting that the company may be overvalued compared to its intrinsic worth. While Growth scores at 3 indicate a decent performance, there may be room for improvement in expanding its business horizons. Overall, HP Inc. seems well-positioned to provide steady dividends and exhibit resilience and momentum, although addressing valuation and ramping up growth could further enhance its long-term prospects.
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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