HP Q2 adjusted EPS eases past estimates
HP Q2 adjusted EPS eases past estimates
Overview
PC and printer maker's fiscal Q2 revenue rose 9% yr/yr
Adjusted EPS for fiscal Q2 rose 21% and beat analyst expectations
Company returned $374 mln to shareholders via dividends and share repurchases
Outlook
HP sees Q3 GAAP diluted net EPS of $0.47 to $0.63
Company expects Q3 non-GAAP diluted net EPS of $0.61 to $0.71
HP updates full-year non-GAAP diluted net EPS outlook to $2.90 to $3.10
Result Drivers
PERSONAL SYSTEMS GROWTH - Revenue in Personal Systems rose 13% yr/yr, led by 14% growth in Commercial PCs and 10% in Consumer PCs, despite a 7% drop in total units
AI AND INNOVATION - Co cited execution of its 'future of work' strategy, including launches of AI PCs, Z workstations, and AI-powered print, as supporting growth
PRINTING FLAT - Printing segment revenue was flat yr/yr, with Commercial Printing revenue unchanged and Consumer Printing down 10%
Company press release: ID:nGNX98RXkd
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EPS | Beat | $0.86 | $0.71 (12 Analysts) |
Q2 EPS |
| $0.49 |
|
Q2 Net Income |
| $450 mln |
|
Q2 Income from Operations |
| $612 mln |
|
Q2 Pretax Profit |
| $493 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and 6 "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy."
Wall Street's median 12-month price target for HP Inc is $20.00, about 18.1% below its May 26 closing price of $24.43
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)