HP meets estimates and sees PC market stabilizing in 2024, but stock still falls

Published: Feb. 28, 2024 at 4:24 p.m. ET

HP Inc.’s stock fell 4% in extended trading Wednesday after the computing giant reported results that aligned with Wall Street’s estimates.

“There are signs of a slowdown in revenue decline, as we saw the PC market stabilizing in 2024” HP Chief Executive Enrique Lores said in an interview. He said HP will provide more details on its AI PCs, due in the second half of the year, during a reseller event next week. Executives from Microsoft Corp. MSFT, Alphabet Inc.’s GOOGL GOOG Google, and Nvidia Corp. NVDA are scheduled to attend.

HP Inc.’s stock fell 4% in extended trading Wednesday after the computing giant reported results that aligned with Wall Street’s estimates.

“There are signs of a slowdown in revenue decline, as we saw the PC market stabilizing in 2024” HP Chief Executive Enrique Lores said in an interview. He said HP will provide more details on its AI PCs, due in the second half of the year, during a reseller event next week. Executives from Microsoft Corp.

MSFT

,
Alphabet Inc.’s

GOOGL


GOOG

Google, and Nvidia Corp.

NVDA

are scheduled to attend.

The Silicon Valley giant

HPQ

reported fiscal first-quarter net earnings of $622 million, or 62 cents a share, compared with net earnings of $469 million, or 47 cents a share, in the year-ago quarter. Adjusted earnings were 81 cents a share.

Net revenue dipped 4.4% to $13.19 billion from $13.8 billion in the same quarter a year ago.

Personal-systems net revenue dropped 4% to $8.8 billion from the same quarter a year earlier. Printing revenue was down 5% year over year, to $4.4 billion.

Analysts surveyed by FactSet had expected, on average, net earnings of 81 cents a share on revenue of $13.57 billion.

For the second quarter, HP is projecting adjusted earnings of 76 cents to 86 cents a share. FactSet analysts are expecting 81 cents a share.

Shares of HP are flat over the past year, while the S&P 500 index
SPX
has improved 28%.



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