HomeMarket NewsHP Earnings Forecast: Key Insights and Predictions

HP Earnings Forecast: Key Insights and Predictions

Daily Market Recaps (no fluff)

always free

HP Inc. Set to Reveal Earnings Amid Positive Market Trends

Palo Alto, California-based HP Inc. (HPQ) is a major player in the personal computing and imaging sectors. With a market capitalization of $36.1 billion, the company’s product lineup includes laser and inkjet printers, scanners, copiers, faxes, personal computers, workstations, storage solutions, and more. As the leader in both the printing and PC markets, HP is scheduled to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, Nov. 19.

Analysts Forecast Strong Profit Growth

Before the earnings announcement, analysts predict that HPQ will report a profit of $0.93 per share on a diluted basis. This reflects a 3.3% increase from $0.90 per share recorded in the same quarter last year. Notably, the company has either met or exceeded the consensus estimates in three out of the last four quarters, with just one miss in that time frame.

Full-Year Earnings Expectation

For the fiscal year, analysts forecast HPQ to achieve earnings per share (EPS) of $3.39, which represents a 3.4% increase from the $3.28 EPS reported in 2023. Looking ahead, EPS is expected to rise by 6.5% to $3.61 in fiscal 2025.

393;
www.barchart.com

Stock Performance Relative to Market Indexes

In the past 52 weeks, HPQ stock has outperformed the S&P 500, which gained 41.7%. HP shares increased by 43.4% during the same period. However, it slightly lagged behind the Technology Select Sector SPDR Fund, which rose by 44.8%.

420;
www.barchart.com

Drivers of Growth

The surge in HP’s performance can largely be attributed to heightened demand for home office equipment during the pandemic. The company has undertaken strategic shifts such as workforce reductions and an increased focus on subscription services, as well as new products catering to hybrid work and gaming markets. Investors are optimistic about HP’s innovative direction, particularly in artificial intelligence. Collaborations with key players like QUALCOMM Incorporated (QCOM), Intel Corporation (INTC), and Advanced Micro Devices, Inc. (AMD) are enhancing HP’s offerings in AI-enabled computing.

Recent Financial Update and Analyst Ratings

On Aug. 28, HPQ announced its Q3 results, with shares closing up over 2% in the subsequent trading session. The revenue of $13.5 billion exceeded expectations set at $13.4 billion. However, adjusted EPS fell by 3.6% year over year to $0.83. For Q4, HPQ anticipates adjusted EPS between $0.89 and $0.99, projecting a full-year adjusted EPS range of $3.35 to $3.45.

Analysts maintain a cautious stance on HPQ stock, with a consensus “Hold” rating. Among the 13 analysts tracking the stock, three recommend a “Strong Buy,” nine suggest a “Hold,” and one advises a “Strong Sell.” Currently, HPQ trades above its mean price target of $35.69, while the highest price target of $42 indicates a potential upside of 13.3%.

More Stock Market News from Barchart

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Do you want a daily market summary with no fluff?

Simple Straightforward Daily Stock Market Recaps Sent for free,every single trading day: Read Now

Explore More

Simple Straightforward Daily Stock Market Recaps

Get institutional-level analysis to take your trading to the next level, sign up for free and become apart of the community.