HP Inc. Prepares for Earnings Announcement Amid Mixed Forecasts
HP Inc. (HPQ), with a market cap of $24.1 billion, stands as a prominent player in personal computing, printing, 3D printing, and related services. Headquartered in Palo Alto, California, the company operates through its Personal Systems, Printing, and Corporate Investments segments, effectively catering to consumers, small and medium-sized businesses, large enterprises, and public sector clients across the globe, with regional hubs in Geneva and Singapore.
Upcoming Fiscal Q2 2025 Earnings Report
On Wednesday, June 4, HP is set to announce its fiscal Q2 2025 earnings results. Ahead of this report, analysts anticipate that HPQ will post an adjusted EPS of $0.80 per share. This figure would represent a 2.4% decrease from the $0.82 recorded in the same quarter last year. Notably, HPQ has surpassed Wall Street’s earnings expectations only once in the last four quarters, missing forecasts on three occasions.
Fiscal 2025 Projections
For the entirety of fiscal 2025, analysts predict an adjusted EPS of $3.39, reflecting marginal growth from $3.39 in fiscal 2024. Looking ahead to fiscal 2026, adjusted EPS is expected to rise by 7.1% year-over-year to $3.63.
Stock Performance Insights
Over the past 52 weeks, HP shares have dropped by 10.2%, trailing behind the broader S&P 500 Index’s ($SPX) 9.3% return and the Technology Select Sector SPDR Fund’s (XLK) 5.2% increase within the same timeframe.
Recent Earnings and Market Reactions
On February 27, HP released its Q1 2025 results, resulting in a 6.8% decline in share price the following day. The adjusted EPS was reported at $0.74, which fell short of estimates and marked a 9% year-over-year decrease. The company presented a softer outlook for Q2, forecasting adjusted EPS to be between $0.75 and $0.85. Furthermore, revenue from the Printing segment decreased by 2%, while total PC units sold dropped by 1%, indicating weakened consumer demand. Heightened investor concerns stemmed from rising U.S.-China tariffs, increasing restructuring costs, and planned workforce reductions.
Analysts’ Consensus and Price Target
Analysts maintain a cautiously optimistic outlook for HP’s stock, currently rated as a “Moderate Buy.” Among 14 analysts covering the stock, four recommend a “Strong Buy,” nine suggest “Holds,” and one advocates a “Strong Sell.” Currently, HPQ is trading below the average analyst price target of $33.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For more details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
