HP Stock Is Falling Wednesday: What's Going On?

HP Inc. HPQ shares are trading lower Wednesday after the company reported its fourth-quarter financial results and issued guidance for the upcoming quarter that fell short of analyst expectations. Here’s what you need to know.

What To Know: HP posted adjusted earnings per share of 93 cents for the quarter, which matched the consensus estimate. Revenue came in at $14.05 billion, surpassing the $13.99 billion estimate. The company’s top-line results were up from $13.82 billion reported in the same period last year, according to Benzinga Pro.

HP noted that net cash provided by operating activities in the quarter was $1.6 billion. The company also generated $1.5 billion in free cash flow. HP ended the quarter with $7.7 billion in inventory.

In addition to the quarterly results, HP announced a 5% increase in its dividend, raising the quarterly payout from $0.2756 to $0.2894 per share. The increased dividend is payable on Jan. 2 to shareholders of record as of Dec. 11.

HP projected adjusted earnings of 70 cents to 76 cents per share for the first quarter of fiscal 2025, versus estimates of 85 cents per share. For the full fiscal year, the company forecasted earnings between $3.45 and $3.75 per share, compared to estimates of $3.60 per share.

CEO Enrique Lores highlighted revenue growth in the Personal Systems and Print divisions, expressing optimism about the company’s ability to “capitalize on the commercial opportunity and lead the future of work.”

Analysts responded to the print by maintaining Neutral ratings and adjusting price targets:

• Barclays analyst Tim Long maintained an Equal-Weight rating and raised the price target from $32 to $35.
• TD Cowen analyst Krish Sankar maintained a Hold rating and raised the price target from $32 to $39.
• Citigroup analyst Asiya Merchant maintained a Neutral rating and lowered the price target from $37 to $36.50.

HP Price Action: HP shares were down 12.5% at $34.17 at the time of writing, according to Benzinga Pro.

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