HP Inc. dawniej Hewlett-Packard Company NYSE: HPQ

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Investing.com -- HP reported mixed fiscal first-quarter results Tuesday as earnings topped, but revenue fell short of Wall Street estimates amid a weaker demand backdrop for personal computing and printer demand.

HP Inc (NYSE:HPQ) was up nearly 2% following the report.

HP reported Q1 EPS of $0.75 on revenue of $13.8 billion, compared with estimates of $0.74 and $14.15B, respectively.

Personal Systems net revenue was $9.2B, down 24% year over year, with printing net revenue falling 5% year-on-year to $4.6B.

Looking ahead, EPS was guided in a range of $0.73 to $0.83 in Q2, in line with expectations for $0.75 a share. For 2023, EPS was estimated in a range of $3.20 to $3.60, compared with estimates for $3.29 a share. The company also guided free cash flow in the range of $3.0B to $3.5B.

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HP upgraded at JPMorgan, shares gain 3%
JPMorgan upgraded HP (NYSE:HPQ) to Overweight from Neutral and raised its price target to $35.00 from $30.00, highlighting a strong Personal Systems (PS) recovery. Shares closed more than 3% higher today.

According to the firm, the latest data points indicate downstream PC shipments in Q1 progressed in line with seasonality despite a challenging Q4/22. Furthermore, upstream data points from component suppliers and ODMs point to the likelihood of above seasonal trends in the coming quarters.

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Morgan Stanley raised Dell Technologies Inc (NYSE:DELL) to Overweight from Equal-Weight and HP Inc (NYSE:HPQ) to Equal-Weight from Underweight in a note to clients on Tuesday.

Analysts at the firm also raised their price targets on the stocks, with Dell's lifted to $55 from $45 and HP's increased to $31 from $28 per share.

The analysts wrote that they decided to raise Dell on the back of its attractive valuation, cyclical PC tailwinds, and the fact it has a path toward accelerating shareholder returns.

"Over the past year, DELL shares have underperformed the S&P 500 by 14 points, driven negative earnings revisions and ~2x turns of P/E contraction. However, with the PC market showing signs of bottoming in C1Q23 we are getting more constructive on DELL," wrote the analysts, who added that the PC market is forming a bottom, and they "want to own DELL for the cyclical PC market rebound."

HP was also raised based on the broader market recovery, although the analysts acknowledged that broader risks remain.

"We expect the company to participate in the PC 'trade' via valuation multiple expansion, but risks such as a back-end loaded FCF ramp, slowing capital returns, and a more challenged printing business are likely to limit outperformance," they explained.

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Latest Release
May 30, 2023

EPS / Forecast
0.8 / 0.76

Revenue / Forecast
12.9B / 13.09B

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Shares of HP Inc (NYSE:HPQ) slid 8.2% in premarket trading as the personal computer maker trimmed its annual forecast due to slowing demand.

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Investing.com -- Udziały w HP Inc (NYSE:HPQ) straciły prawie jedną dziesiątą swojej wartości na początku handlu w USA w środę, co oznacza największy spadek od maja 2021 r., Po tym, jak producent komputerów osobistych obniżył swoje całoroczne szacunki zysku.

W swoich rocznych zyskach opublikowanych po zamknięciu handlu we wtorek, HP z siedzibą w Kalifornii powiedział, że oczekuje teraz skorygowanego zysku na akcję w wysokości od 3,23 USD do 3,35 USD w bieżącym roku podatkowym. Jego wstępne prognozy mieściły się w przedziale od 3,30 do 3,50 USD.

Umiarkowane prognozy pojawiają się, gdy HP stoi w obliczu trudności związanych ze spowolnieniem wydatków, szczególnie w Chinach. Niepewne warunki ekonomiczne przekonały klientów do ograniczenia wydatków, uderzając w popyt na elektronikę i powodując gromadzenie zapasów w całym łańcuchu dostaw.

Dyrektor generalny HP Enrique Lores zaznaczył w oświadczeniu, że chociaż prognozowany jest sekwencyjny wzrost w czwartym kwartale, otoczenie zewnętrzne "nie poprawiło się tak szybko, jak oczekiwano".

"W rezultacie łagodzimy nasze oczekiwania" - dodał Lores.

Przychody netto HP spadły o 9,9% do 13,20 mld USD w trzecim kwartale, rozmijając się z konsensusem Bloomberga na poziomie 13,38 mld USD.

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On the other hand, HP Inc.'s (NYSE:NYSE:HPQ) stock declined by 1.2% after Berkshire Hathaway (NYSE:BRKa) (NYSE:BRK.B), led by Warren Buffett, disclosed it had sold 5.5 million shares of the personal computers and printers manufacturer. This transaction marked the first sale of HP Inc.'s stock since Berkshire Hathaway acquired a 12% stake in early 2022.