© Reuters. HP stock falls 3% on weak guidance
(Updated – November 22, 2023 5:51 AM EST)
HP (NYSE:) shares fell about 2% in early New York trading on Wednesday following the release of Q4 results.
Revenues of $13.8 billion (down 6% year-over-year) came in slightly lower than the consensus estimate of $13.82B. EPS of $0.90 was in line with expectations.
“Q4 was a solid quarter of sequential growth and strong free cash flow as we continued to improve the performance of the company. We are entering FY24 with a relentless focus on driving profitable growth, reducing our structural costs and returning 100% of our free cash flow to shareholders,” said CFO Marie Myers.
For Q1/24, the company expects EPS to be in the range of $0.76-$0.86, compared to the consensus of $0.86.
For the full year, HP sees EPS to be in the range of $3.25-$3.65, compared to the consensus estimate of $3.44. The company anticipates generating free cash flow in the range of $3.1-$3.6B in 2024.
Analysts at Citi reiterated a Buy rating and a $33 per share price target on HPQ stock.
“We maintain our Buy rating on HP shares and see a path towards higher multiples as FCF generation improves amidst an improved PC environment and driving higher shareholder returns,” the analysts said.
Analysts at Bernstein said the results were “largely in line with consensus.”
“Longer-term, we believe that HP’s projected long-term revenue growth of 2 – 4% appears ambitious. We feel more comfortable with 0 – 2% revenue growth.”
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