HP (NYSE:HPQ) Releases FY25 Earnings Guidance

HP (NYSE:HPQ) updated its FY25 earnings guidance on Tuesday. The company provided earnings per share guidance of $3.45-3.75 for the period, compared to the consensus earnings per share estimate of $3.61. HP also updated its FY 2025 guidance to 3.450-3.750 EPS.

HP Stock Down 11.4 %

Shares of NYSE HPQ opened at $34.66 on Friday. The business has a 50-day moving average price of $36.56 and a 200 day moving average price of $35.52. The stock has a market cap of $33.40 billion, a PE ratio of 12.33, a price-to-earnings-growth ratio of 2.40 and a beta of 1.07. HP has a 52-week low of $27.42 and a 52-week high of $39.79.

HP (NYSE:HPQ) last posted its quarterly earnings data on Tuesday, November 26th. The computer maker reported $0.93 earnings per share for the quarter, meeting the consensus estimate of $0.93. The business had revenue of $14.06 billion during the quarter, compared to the consensus estimate of $13.99 billion. HP had a negative return on equity of 253.39% and a net margin of 5.18%. The company’s revenue was up 1.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.90 earnings per share. Sell-side analysts anticipate that HP will post 3.56 earnings per share for the current year.

HP Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 2nd. Shareholders of record on Wednesday, December 11th will be paid a $0.2894 dividend. The ex-dividend date is Wednesday, December 11th. This is a positive change from HP’s previous quarterly dividend of $0.28. This represents a $1.16 dividend on an annualized basis and a yield of 3.34%. HP’s payout ratio is currently 39.15%.

HP announced that its Board of Directors has authorized a stock repurchase program on Wednesday, August 28th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the computer maker to buy up to 28.9% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its shares are undervalued.

Analysts Set New Price Targets

Several equities analysts recently issued reports on HPQ shares. Morgan Stanley dropped their price target on HP from $37.00 to $36.00 and set an “equal weight” rating on the stock in a research report on Thursday, August 29th. TD Cowen upped their price target on HP from $32.00 to $39.00 and gave the stock a “hold” rating in a research note on Wednesday. Loop Capital lowered their price objective on shares of HP from $37.00 to $35.00 and set a “hold” rating on the stock in a research report on Thursday, September 5th. UBS Group upped their price objective on shares of HP from $34.00 to $37.00 and gave the stock a “neutral” rating in a research report on Thursday, August 29th. Finally, JPMorgan Chase & Co. lowered their target price on shares of HP from $42.00 to $41.00 and set an “overweight” rating on the stock in a report on Wednesday, November 20th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $36.32.

Insider Transactions at HP

In related news, CEO Enrique Lores sold 211,501 shares of HP stock in a transaction on Thursday, September 12th. The stock was sold at an average price of $33.16, for a total transaction of $7,013,373.16. Following the completion of the transaction, the chief executive officer now directly owns 3 shares of the company’s stock, valued at approximately $99.48. The trade was a 100.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 0.41% of the company’s stock.

About HP

HP Inc provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.