Hp Stock Drops After Weak Guidance

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Hp Stock Drops After Weak Guidance

HP Stock Drops 3% After Weak Guidance

HP (HPQ) shares came under selling pressure as the stock lost nearly 3% of its value. The selling pressure resulted from the announcement of Q4 results of the HP company, which showed a below-expectations revenue.

The announced revenue during Q4 was $13.8 billion, which the forecast was for $13.82 billion. If we look at the recent revenue numbers in terms of Y/Y, that's a drop of around 6%. Similarly, the Q4 EPS of the HP company was reported at $0.90, which was the same as the market's expectations.

Overall, the Q4 results of HP Inc. were in line with expectations, with only a slight miss in terms of revenue. According to the CFO of HP, the 4th quarter was a good growth period for HP and allowed the company to improve its free cash flow. Together, these positive changes will allow them to improve the company's performance in the next quarters.

Q1 2024 EPS Expected Between 0.76 - 0.86

For the financial year 2024, the CFO added that they will be focusing on maintaining strong growth while also lowering any of the associated structural costs. In addition, the HP company also plans to return 100% of the free cash flow back to the company shareholders.

During the Q1 of 2024, the expected EPS of the HP company will be between $0.76 to around $0.86. This is in line with the forecast of around $0.86 EPS during the Q1 of 2024.

For the entire year, the company believes that its EPS will be between $3.25 and around $3.65, while the forecast is for around $3.44. In addition, the free cash flow for the HP company during the same period of time will be somewhere around $3.1 billion to $3.6 billion.

HP forecasts upto $3.6B available cash flow in 2024.

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