HP Inc. (NYSE:HPQ ) Q2 2025 Earnings Conference Call May 28, 2025 5:00 PM ET Company Participants Orit Keinan-Nahon - Head of Investor Relations Enrique Lores - President and Chief Executive Officer Karen Parkhill - Chief Financial Officer Conference Call Participants Erik Woodring - Morgan Stanley Michael Ng - Goldman Sachs Asiya Merchant - Citigroup Wamsi Mohan - Bank of America Samik Chatterjee - JPMorgan Amit Daryanani - Evercore ISI David Vogt - UBS Tim Long - Barclays Alek Valero - Loop Capital Operator Good day, everyone, and welcome to the Second Quarter 2025 HP Incorporated Earnings Conference Call. My name is Tina, and I will be your conference moderator for today's call.
The headline numbers for HP (HPQ) give insight into how the company performed in the quarter ended April 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
HP (HPQ) came out with quarterly earnings of $0.71 per share, missing the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $0.82 per share a year ago.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for HP (HPQ), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended April 2025.
HP's Q2 results are likely to reflect benefits from traction in its AI-based computing and latest gaming products.
In the most recent trading session, HP (HPQ) closed at $29.10, indicating a -0.75% shift from the previous trading day.
HP is a market leader in laptops and printers, but both industries have slow growth prospects, limiting long-term upside potential. Despite stagnant revenue and net income over the past five years, HP's valuation appears quite attractive, with decent upside potential. The company's recurring revenue from high-margin ink sales and diversified global footprint provide stability and reduce volatility.
In the most recent trading session, HP (HPQ) closed at $28.78, indicating a +1.84% shift from the previous trading day.
HP Inc. is shifting focus to high-margin products and corporate services, enhancing profitability through cost reductions and investments in AI, premium PCs, and cloud services. Despite market stagnation, HP maintains high profitability, generates strong free cash flow, and supports shareholders with buybacks and dividends, making it a stable investment. The company is undervalued compared to historical and peer multiples, presenting a buying opportunity with a fair valuation of $30.16 and a potential 20.72% total return.
HP (HPQ) reachead $25.39 at the closing of the latest trading day, reflecting a +0.44% change compared to its last close.
HP (HPQ) concluded the recent trading session at $24.18, signifying a +1.81% move from its prior day's close.
HP (HPQ) concluded the recent trading session at $23.74, signifying a -1.25% move from its prior day's close.