Despite its less-than-impressive performance, HP gave a bullish forecast for the current quarter saying it expects its adjusted diluted earnings per share to be in the range of $0.40 to $0.50.
American multinational tech giant and computer hardware manufacturer, HP Inc (NYSE: HPQ) has released its Q1 2023 results showing mixed performance across the board. According to the company’s release, it recorded a total net revenue of $13.8 billion, down 18.8% from the year-ago period with adjusted earnings coming in at 75 cents per share.
According to HP, this earning came well within the range of $0.70 to $0.80 it projected in its former guidance. The company said its first-quarter net cash used in operating activities was pegged at around $16 million with free cash flow coming in at $200 million.
Another major highlight shared by the company was that it returned the sum of $400 million to its shareholders through share buyback and dividends.
HP ranks amongst the most dominant computer and printing machine manufacturers in the world. Its business recorded a major bust during the COVID-19 era as stay-at-home impact its device production across the board. With the slowing global economy, HP has been recording slower demand for its gadgets, leading to comparatively lower revenue.
“We delivered on our non-GAAP EPS target despite industry-wide headwinds, reflecting disciplined execution across our business,” said Enrique Lores, HP President, and CEO. “The Future Ready plan we announced last quarter is having an immediate impact, as we continue to reduce our costs while maintaining investments in long-term growth.”
HP said its dividend payment of $0.2625 per share in the first quarter resulted in cash usage of $0.3 billion. The company said its Personal Systems (PS) net revenue came in at $9.2 billion, down 24% year-on-year. Both the Consumer PS and Commercial PS also recorded significant drops by 36% and 18% respectively.
HP and Its Bullish Performance Forecast
Despite its less-than-impressive performance, HP gave a bullish forecast for the current quarter saying it expects its adjusted diluted earnings per share to be in the range of $0.40 to $0.50. For the full fiscal year, HP said it expects to hit an EPS of $3.20 to $3.60 a share. Should it hit the midpoint of this range, it would have surpassed current estimates from analysts which projected $3.30.
HP still expects further headwinds in the quarters ahead owing to the current global market, “restructuring and other charges, acquisition, and divestiture charges, amortization of intangible assets, debt extinguishment costs, non-operating retirement-related (credits)/charges, tax adjustments, and the related tax impact on these items.”
HP’s positive reassurance in its future guidance has positively riled investors with the company’s shares up 3.32% in the Pre-Market to $30.50. The company joins the cohort of other Wall Street giants who has released impressive earnings and guidance to push the broader sentiment in the stock market to a new height.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.