Palo Alto, California-based HP Inc. (HPQ) provides personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services. With a market cap of $36.1 billion, the company offers products which includes laser and inkjet printers, scanners, copiers and faxes, personal computers, workstations, storage solutions, computing, and printing systems. The market leader in the printing and PC sectors is expected to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, Nov. 19.
Ahead of the event, analysts expect HPQ to report a profit of $0.93 per share on a diluted basis, up 3.3% from $0.90 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect HPQ to report EPS of $3.39, up 3.4% from $3.28 in fiscal 2023. Its EPS is expected to rise 6.5% year over year to $3.61 in fiscal 2025.
HPQ stock has outperformed the S&P 500’s ($SPX) 41.7% gains over the past 52 weeks, with shares up 43.4% during this period. However, it underperformed the Technology Select Sector SPDR Fund’s (XLK) 44.8% gains over the same time frame.
HP has seen strong performance thanks to growth in its consumer-facing business during the pandemic, spurred by increased demand for home office hardware. The company has made strategic changes, including workforce reductions and focusing on subscription services and new products for growing markets like hybrid work and gaming. Investors are bullish on HP’s innovative portfolio, particularly in the AI space where HP has launched several new AI-powered PCs. HP’s collaborations with QUALCOMM Incorporated (QCOM), Intel Corporation (INTC), and Advanced Micro Devices, Inc. (AMD) are driving advancements in AI-powered computing.
On Aug. 28, HPQ reported its Q3 results, and its shares closed up more than 2% in the following trading session. Its revenue of $13.5 billion, was better than the consensus of $13.4 billion. Its adjusted EPS declined 3.6% year over year to $0.83. For Q4, HPQ expects adjusted EPS to be between $0.89 and $0.99. The company estimates full-year adjusted EPS to be between $3.35 and $3.45.
Analysts’ consensus opinion on HPQ stock is cautious, with a “Hold” rating overall. Out of 13 analysts covering the stock, three advise a “Strong Buy” rating, nine give a “Hold” rating, and one recommends a “Strong Sell.” While HPQ currently trades above its mean price target of $35.69, the Street-high price target of $42 suggests an upside potential of 13.3%.
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