HP President and CEO Enrique Lores joins 'Mad Money' host Jim Cramer to talk quarterly results, innovations in their PC offerings, AI adoption, and more.
HP Inc. is a solid market leader in the printing and PC sectors with a business that requires low capital expenditure and delivers high ROIC. HPQ implements an aggressive stock buyback program and has a consistent dividend policy in place, perfect for passive income. Even in the event of low share price appreciation, investors can expect an estimated 9% shareholder yield annually.
I maintain a hold rating for HP Inc. stock due to uncertain earnings outlook, lack of growth catalysts, and pressure on print margins. 3Q24 results showed a slight revenue beat but missed EPS estimates, with Print segment underperformance dragging down overall margins. The commercial PC segment shows recovery, but consumer PC demand remains weak, impacting overall growth prospects.
HP Inc. (NYSE:HPQ ) Goldman Sachs Communacopia + Technology Conference September 9, 2024 1:50 PM ET Company Participants Enrique Lores - CEO Conference Call Participants Michael Ng - Goldman Sachs Michael Ng Great. Well, welcome to the HP Inc. fireside chat at the Goldman Sachs Communacopia and Technology Conference.
HP Inc. (HPQ) and HP Enterprise (HPE) stocks have had mixed returns since the two companies separated in 2015. HPQ stock has jumped by over 263% while HPE has risen by 159% in the same period.
Hewlett Packard said on Monday it would continue legal proceedings to seek up to $4 billion in damages from British billionaire Mike Lynch's estate in the UK.
HP rallied in spite of a bottom-line miss and lowered earnings outlook for the year. However, the weakness seems entirely concentrated in the declining printing segment.
I previously rated HPQ as a BUY due to the status of the cycle and its attractive P/E ratio. I downgrade HPQ's rating to HOLD. The downgrade is due to the valuation expansion (its stock prices rallied 30%+ since my last writing) and the changes in its business fundamentals as reported in its Q3 earnings.
While the top- and bottom-line numbers for HP (HPQ) give a sense of how the business performed in the quarter ended July 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
HP's Q3 results reflect the negative impacts of rising commodity costs, competitive pressure and weakness of its business in China.
HP Inc (NYSE:HPQ) shares started trading lower on Thursday after a mixed showing in its third-quarter results. Revenue increased 2.4% year-over-year, to $13.52 billion, compared to a consensus Wall Street forecast of $13.37 billion.
This was the first earnings report since HP started shipping AI PCs in June.