HP earnings preview: Wall Street expecting revenue decline in Q4

[MongiIG]

HP is scheduled to report its fourth quarter earnings after the US closing bell tonight and analysts on Wall Street are projecting that it will announce quarterly earnings of $0.90 per share in its forthcoming report.

 

 Angela Barnes | Financial presenter/producer, London | Publication date: Tuesday 21 November 2023 10:37

Representing an increase of 5.9% year-over-year. Revenue is seen at $13.82 billion, suggesting a decline of roughly $1 billion on the prior-year quarter.

(AI Video Transcript)

HP Q4 earnings

HP is going to announce its Q4 earnings, and analysts are predicting that they will earn $0.90 per share. This would be a 5.9% increase from the previous year. However, revenue estimates are not looking as good. It is expected that they will see a decline of approximately $1 billion compared to last year, mainly because of their personal systems division, which is responsible for building desktops and notebooks. This division is expected to see a 9.8% decrease in revenue.

 

Despite the revenue decline, HP wants to reassure the market that they believe demand for their products will stabilize by the end of the year. They also just announced a 5% increase in their dividend, which is when they distribute some of their profits to shareholders. This is meant to help calm any concerns and make investors feel more confident.

HP's stock

Currently, HP's stock has been trading 1.1% lower than last year overall, but it has seen a small gain of 5%. People will be watching closely to see what their actual earnings per share and revenue figures are. HP's positive outlook on PC demand stabilizing may provide some reassurance to investors. However, the decline in revenue from their personal systems division does raise some worries about how well HP will be able to compete in the market for desktops and notebooks.

HP's earnings report

If HP's earnings report confirms the predicted figures, it could further impact their stock performance and how investors feel about the company. The steps HP is taking to address these concerns and increase their dividend could help make investors feel better and lessen the blow of the decreased revenue from the personal systems division. Ultimately, the market will be judging how well HP can adapt to the changing preferences of consumers and still make a profit in the competitive PC market.

 

 

 

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