HP (HPQ) beats earnings and revenue estimates in Q2, with PC sales up

From NASDAQ: 2024-05-30 10:50:00

HP Inc. (HPQ) shares rose 4% in pre-market trading after reporting better-than-expected second-quarter fiscal 2024 results. Non-GAAP earnings were 82 cents per share, beating the consensus of 81 cents, with net revenues of $12.8 billion surpassing estimates. Personal Systems grew 3%, while printing business revenues fell 8%.

In the second quarter, HPQ reported a 6% increase in PC units sold, driven by a 12% growth in Commercial PS shipments. The printing business saw a decline in revenues due to market competition. Regionally, the Americas grew 3.1%, EMEA had a marginal decline, and Asia Pacific and Japan fell 7.7%.

HPQ’s non-GAAP operating margin was 8.8%, with the Printing division remaining flat at a 19% margin. The company ended the quarter with $2.52 billion in cash and generated $581 million in cash from operations and $481 million in free cash flow. They returned $369 million to shareholders.

For the third quarter of fiscal 2024, HPQ forecasts non-GAAP EPS between 78 cents and 92 cents, slightly lower than the Zacks Consensus Estimate of 86 cents. For the full year, they expect EPS between $3.30 and $3.60, with free cash flow in the range of $3.1-$3.6 billion. The stock has gained 9% year-to-date and carries a Zacks Rank #3.

Other notable companies in the technology sector with Zacks Rank #1 include AppFolio (APPF), Arista Networks (ANET), and Alphabet (GOOGL). These stocks have shown strong performance in 2024, with upward revisions in EPS estimates and significant stock price gains.



Read more at NASDAQ: HP (HPQ) Gains 4% as Q2 Earnings & Revenues Beat Estimates