HP (NYSE:HPQ) Posts Quarterly Earnings Results, Meets Estimates

HP (NYSE:HPQ) released its quarterly earnings data on Tuesday. The computer maker reported $0.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.93, Briefing.com reports. The firm had revenue of $14.06 billion for the quarter, compared to analysts’ expectations of $13.99 billion. HP had a net margin of 5.33% and a negative return on equity of 266.37%. The company’s revenue for the quarter was up 1.7% compared to the same quarter last year. During the same quarter last year, the business posted $0.90 earnings per share. HP updated its Q1 guidance to $0.70-0.76 EPS and its FY25 guidance to $3.45-3.75 EPS.

HP Price Performance

Shares of HP stock traded down $0.22 during trading on Tuesday, hitting $39.08. 12,052,757 shares of the stock were exchanged, compared to its average volume of 7,761,361. The firm’s 50-day moving average price is $36.47 and its 200 day moving average price is $35.46. The stock has a market cap of $37.66 billion, a price-to-earnings ratio of 13.79, a price-to-earnings-growth ratio of 2.62 and a beta of 1.07. HP has a 12-month low of $27.42 and a 12-month high of $39.79.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on HPQ. JPMorgan Chase & Co. dropped their price target on shares of HP from $42.00 to $41.00 and set an “overweight” rating for the company in a research note on Wednesday, November 20th. Barclays reduced their price objective on shares of HP from $33.00 to $32.00 and set an “equal weight” rating for the company in a research note on Thursday, August 29th. UBS Group lifted their price objective on shares of HP from $34.00 to $37.00 and gave the stock a “neutral” rating in a research report on Thursday, August 29th. Morgan Stanley reduced their target price on HP from $37.00 to $36.00 and set an “equal weight” rating on the stock in a research report on Thursday, August 29th. Finally, Loop Capital cut their price objective on HP from $37.00 to $35.00 and set a “hold” rating on the stock in a report on Thursday, September 5th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat, HP has an average rating of “Hold” and an average target price of $35.45.

HP declared that its board has approved a stock repurchase program on Wednesday, August 28th that permits the company to buyback $10.00 billion in shares. This buyback authorization permits the computer maker to reacquire up to 28.9% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at HP

In related news, CEO Enrique Lores sold 211,501 shares of the business’s stock in a transaction that occurred on Thursday, September 12th. The stock was sold at an average price of $33.16, for a total transaction of $7,013,373.16. Following the completion of the sale, the chief executive officer now owns 3 shares in the company, valued at $99.48. The trade was a 100.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.41% of the stock is owned by insiders.

About HP

HP Inc provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.