HP (NYSE:HPQ) Releases Q1 Earnings Guidance

HP (NYSE:HPQ) updated its first quarter earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of $0.70-0.76 for the period, compared to the consensus estimate of $0.85. HP also updated its FY 2025 guidance to 3.450-3.750 EPS.

HP Price Performance

Shares of HP stock opened at $34.66 on Thursday. The company has a market capitalization of $33.40 billion, a P/E ratio of 12.16, a PEG ratio of 2.70 and a beta of 1.07. The business’s fifty day moving average price is $36.56 and its two-hundred day moving average price is $35.52. HP has a 1-year low of $27.42 and a 1-year high of $39.79.

HP (NYSE:HPQ) last released its quarterly earnings results on Tuesday, November 26th. The computer maker reported $0.93 EPS for the quarter, hitting analysts’ consensus estimates of $0.93. The company had revenue of $14.06 billion for the quarter, compared to the consensus estimate of $13.99 billion. HP had a net margin of 5.33% and a negative return on equity of 266.37%. HP’s revenue was up 1.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.90 EPS. On average, research analysts expect that HP will post 3.39 earnings per share for the current fiscal year.

HP Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 2nd. Stockholders of record on Wednesday, December 11th will be given a dividend of $0.2894 per share. The ex-dividend date of this dividend is Wednesday, December 11th. This is a boost from HP’s previous quarterly dividend of $0.28. This represents a $1.16 annualized dividend and a dividend yield of 3.34%. HP’s dividend payout ratio (DPR) is 38.60%.

HP declared that its Board of Directors has authorized a stock buyback plan 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 shares through open market purchases. Shares buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages have commented on HPQ. TD Cowen boosted their price target on shares of HP from $32.00 to $39.00 and gave the stock a “hold” rating in a research report on Wednesday. Loop Capital dropped their target price on shares of HP from $37.00 to $35.00 and set a “hold” rating on the stock in a report on Thursday, September 5th. Bank of America cut shares of HP from a “buy” rating to a “neutral” rating and set a $37.00 target price for the company. in a report on Friday, September 27th. Citigroup dropped their price target on HP from $37.00 to $36.50 and set a “neutral” rating on the stock in a report on Wednesday. Finally, UBS Group upped their target price on HP from $34.00 to $37.00 and gave the company a “neutral” rating in a report on Thursday, August 29th. One research 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’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $36.32.

Insider Activity

In related news, CEO Enrique Lores sold 211,501 shares of the firm’s stock in a transaction that occurred on Thursday, September 12th. The shares were 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 directly owns 3 shares in the company, valued at approximately $99.48. This trade represents a 100.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.41% of the stock is owned by corporate 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.