Personal computer (PC) maker HP (HPQ) has reported fiscal fourth-quarter financial results that narrowly topped Wall Street forecasts.
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The company, which also makes printers and computer supplies, announced earnings per share of $0.93, which was ahead of the $0.92 expected among analysts. Revenue of $14.64 billion beat the consensus forecast of $14.50 billion.
Despite the top- and bottom-line beats, HP lowered its forward guidance, saying it expects earnings between $0.73 and $0.81 a share for the current quarter. The consensus forecast on Wall Street called for a profit of $0.78. For the full fiscal year, HP said it expects earnings of $2.90 to $3.20 a share, compared with analyst expectations of $3.34. HPQ stock was down 8% in extended trading on Nov. 25.
HP’s income statement. Source: The Fly
HP’s Business Segments
HP’s personal-systems revenue totaled $10.4 billion, up 8% from the previous year, driven in part by rising demand for AI personal computers and the introduction of Microsoft’s (MSFT) Windows 11 operating system. However, revenue from HP’s printer business fell 4% from a year earlier to $4.3 billion.
Management said rising prices for memory chips will be a drag on its financial results over the coming year. At the same time, HP said that its customers are investing more in artificial intelligence (AI), leaving less money to buy new printers and other computer hardware.
Is HPQ Stock a Buy?
The stock of HPQ has a consensus Hold rating among 12 Wall Street analysts. That rating is based on one Buy, nine Hold, and two Sell recommendations issued in the last three months. The average HPQ price target of $27.42 implies 12.24% upside from current levels. These ratings could change after the company’s financial results.
