HP Inc. Faces Challenges Despite Strong Q1 Revenue Gains

Author: Evelyn Baker Updated: 02-27-2025 05:16 PM

HP Inc. Reports First Quarter Results

HP Inc. (NYSE: HPQ) recently unveiled its earnings for the first quarter, which has garnered attention from investors and market analysts alike. The report featured some key figures that reveal both promise and challenge for the technology giant.

Financial Highlights

Quarterly Performance: HP announced earnings of 74 cents per share, aligning precisely with analyst expectations. The company's revenue reached an impressive $13.5 billion, surpassing the predicted $13.36 billion and marking an increase from $13.19 billion reported in the same quarter last year.

Segment Analysis

Personal Systems Division: The Personal Systems segment reported net revenue of $9.2 billion, reflecting a growth of 5% year over year, maintaining a robust operating margin of 5.5%. While the consumer sector faced a decline of 7%, the commercial sector thrived with an increase of 10%. Consequently, overall unit sales dipped by 1%, with notable variations between consumer and commercial units.

Printing Performance

On the other hand, the Printing segment saw net revenue of $4.3 billion, which translates to a 2% decline year over year. The operating margin stood at 19%. Despite enthusiasm in consumer printing with a 5% revenue boost, the commercial printing aspect unveiled a 7% decrease, and overall supplies revenue remained steady.

Leadership Insights

CEO Enrique Lores commented on the results, expressing satisfaction with the continuous revenue growth for three consecutive quarters. He attributed this achievement to a robust commercial business in the Personal Systems segment and the flourishing AI PC sector. Lores stressed the company's commitment to responding to market dynamics and investing in sustainable future options.

Guidance and Outlook

Future Projections: Moving forward, HP anticipates adjusted earnings between 75 cents and 85 cents per share for the upcoming second quarter, slightly below the analyst estimate of 86 cents. For the fiscal year 2025, the predicted earnings are between $3.45 and $3.75 per share, in contrast with the previous forecast of $3.75.

Market Reaction

Following the earnings announcement, HP's stock experienced a notable decline of 3.68%, trading at $31.91 as of Thursday after hours. The market's reaction indicates a cautious sentiment as investors digest the outlook and ongoing developments within the company.

Frequently Asked Questions

What were HP's earnings per share in the latest quarter?

HP reported earnings of 74 cents per share for the first quarter.

How did HP's revenue compare to analyst expectations?

The company's revenue of $13.5 billion surpassed the analyst consensus estimate of $13.36 billion.

What was the growth percentage in HP's Personal Systems segment?

The Personal Systems segment saw a year-over-year revenue increase of 5%.

What is HP's outlook for the second quarter?

HP expects adjusted earnings between 75 cents and 85 cents per share for the second quarter.

How did the market react to HP's earnings report?

HP shares fell by 3.68% in after-hours trading following the earnings announcement.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

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