HP (NYSE:HPQ) Releases Earnings Results, Hits Estimates

HP (NYSE:HPQ) released its earnings results on Tuesday. The computer maker reported $0.93 EPS for the quarter, meeting the consensus estimate of $0.93, Briefing.com reports. HP had a negative return on equity of 266.37% and a net margin of 5.33%. The firm had revenue of $14.06 billion during the quarter, compared to analyst estimates of $13.99 billion. During the same period in the prior year, the firm posted $0.90 earnings per share. The business’s quarterly revenue was up 1.7% compared to the same quarter last year. 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 HPQ traded down $0.22 during trading hours on Tuesday, hitting $39.08. The company’s stock had a trading volume of 12,052,757 shares, compared to its average volume of 7,761,361. The business has a 50 day simple moving average of $36.47 and a two-hundred day simple moving average of $35.46. The company has a market cap of $37.66 billion, a price-to-earnings ratio of 13.79, a PEG ratio of 2.62 and a beta of 1.07. HP has a 52-week low of $27.42 and a 52-week high of $39.79.

HP announced that its Board of Directors has initiated a stock buyback program on Wednesday, August 28th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the computer maker to buy up to 28.9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Citigroup cut shares of HP from a “buy” rating to a “neutral” rating and set a $37.00 target price on the stock. in a report on Tuesday, October 1st. UBS Group boosted their price objective on HP from $34.00 to $37.00 and gave the stock a “neutral” rating in a report on Thursday, August 29th. JPMorgan Chase & Co. decreased their price target on shares of HP from $42.00 to $41.00 and set an “overweight” rating for the company in a report on Wednesday, November 20th. Barclays lowered their price objective on HP from $33.00 to $32.00 and set an “equal weight” rating on the stock in a report on Thursday, August 29th. Finally, Loop Capital reduced their price target on shares of HP from $37.00 to $35.00 and set a “hold” rating for the company 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 given a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $35.45.

Insider Transactions at HP

In related news, CEO Enrique Lores sold 211,501 shares of HP stock in a transaction on Thursday, September 12th. The shares were sold at an average price of $33.16, for a total value of $7,013,373.16. Following the transaction, the chief executive officer now directly owns 3 shares of the company’s stock, valued at $99.48. The trade was a 100.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.41% of the company’s stock.

HP Company Profile

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.