In a trend that has continued for the third consecutive quarter, HP has reported a decline in revenue at a lower rate, a possible indicator of market stabilization. The company remains optimistic about the outlook for the PC market, expecting growth in 2024.
Financial Performance Overview
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Earnings: HP recorded earnings of $622 million, or 62 cents a share, for the first quarter ended Jan. 31, up from $469 million, or 47 cents a share, compared to the previous year. Adjusted earnings stood at 81 cents a share, in line with analysts’ estimates.
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Revenue: Despite a 4.4% decline in revenue to $13.19 billion, down from $13.8 billion, the figures fell short of analysts’ expectations of $13.56 billion.
Insights from HP’s CEO
In an interview, Chief Executive Enrique Lores reflected on the performance and market conditions. He highlighted that while personal systems revenue saw a 4% decline and print revenue tumbled by 5%, there were notable strengths in specific segments.
Lores mentioned that HP experienced pricing pressure in low-end PC categories and softer demand from the federal sector in the U.S. due to budget-related uncertainties. However, there was a positive uptick in small- and mid-size businesses as well as PC growth in Europe after some time, according to the CEO.
Forecast and Future Outlook
HP adjusted its earnings per-share range to $2.61 to $3.01 from the previous guidance of $2.68 to $3.08. The company maintained its adjusted earnings per-share forecast between $3.25 and $3.65, along with the free cash flow projection of $3.1 billion to $3.6 billion.
Looking ahead to 2024, Lores expressed confidence in the PC market’s growth prospects for the full year. While anticipating a more robust second half, HP remains optimistic about the overall trajectory of the market.
As HP navigates through evolving market dynamics, the focus remains on strategic initiatives and adaptability in response to changing demands.
For more updates and insights, stay tuned for future announcements from HP’s leadership team.