HP Inc (NYSE:HPQ) shares are set to fall around 8%, based on pre-market trading, after the personal computer maker's quarterly revenue and guidance for earnings in the coming quarter disappointed investors.
Earnings for its fiscal fourth quarter rose 3% year on year to $0.93, which was in line with Wall Street expectations, on revenue that fell 4% to $13.2 billion, below analysts’ expectations of $14 billion.
Consumer PC sales were up 2% to $9.6 billion, which was short of analysts' forecasts of $9.8 billion. though printer sales rose for the first quarter in 11, up 1% to $4.5 billion and higher than the $4.2 billion consensus estimate.
HP’s guidance for the first quarter of its new financial year was for $0.73 of earnings per share, compared to analyst expectations of $0.85 .
CEO Enrique Lores hailed the increase in revenue for the second consecutive quarter, driven by "steady progress" in PCs and printers.
"With momentum heading into FY25, we are well-positioned to capitalize on the commercial opportunity and lead the future of work."
Free cash flow growth allowed the return of $3.2 billion to shareholders, said CFO Karen Parkhill, saying HP is "well positioned to deliver solid growth across revenue, non-GAAP net earnings, EPS and free cash flow in FY25".
Given confidence in the future, she said the annual dividend is being raised 5%.