HP Inc (NYSE:HPQ) has projected its fiscal 2024 earnings to align closely with estimates and has increased its annual dividend, indicating stabilising demand in the personal computer market.
Speaking to securities analysts, HP forecasted earnings per share in the range of $2.75 to $3.15 and non-GAAP diluted net EPS in the range of $3.25 to $3.65.
The company also anticipates generating free cash flow of $3.1 billion to $3.6 billion for the 2024 fiscal year and plans to return approximately 100% of this free cash flow to shareholders through dividends and share repurchases.
Chief executive Enrique Lores stated: "Our Future Ready plan is strengthening our core business, accelerating our expansion in services, building new operational capabilities, and improving our structural costs."
Key tenets of HP’s Future Ready are “investments in our people, improving product mix, driving structural cost savings and other productivity measures”.
The company’s board approved an increase in the planned dividend amount to $1.10 per share, marking a 5% increase from the prior dividend.
HP’s share price has remained stagnant in the past five years, delivering just 12% in shareholder returns.
But there are signs that flailing global PC demand might have bottomed out.
The International Data Corporation (IDC) reported a 7.6% year-over-year decline in global PC shipments during the third quarter of 2023, though PC shipments increased in each of the last two quarters.
Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers, stated: "The PC industry is on a slow path to recovery as a device refresh cycle and end of support for Windows 10 will help drive sales in the second half of 2024 and beyond."