Today HPQ is releasing earnings, does anyone think it would be a good idea to grab shares ahead of the annoucement?
The analysts are predicting a non-GAAP EPS of somewhere between 85 cents and 97 cents. That's a nice little bump of 5.9% from last year's quarter. Revenue-wise, analysts are eyeing $13.68 billion, which, admittedly, is a 7.6% dip from last year. But we gotta consider that they have beat the consensus mark three out of the last four quarters, so there could be a surprise in the offing.
Now, let’s dive into what’s been cooking at HP. The company’s been riding a bumpy road with PC demands. Remember the pandemic-led work-from-home craze? That was a good time for HP’s PC sales. But fast forward to now, with economies reopening and wallets tightening, and we're seeing a different picture. Consumer PCs might bring in around $2.4 billion, but the commercial side could be feeling the pinch, with estimates around $6.68 billion.
Overall, we’re looking at a projected $9.08 billion in Personal Systems revenues, down 11.6% from last year. Ouch. And yeah, global PC shipments are down too – Gartner's saying a 9% drop in Q3. But, and here’s a glimmer of hope, that's actually an improvement from Q2. So maybe, just maybe, the PC market's finding its footing again.
HP’s printing division might not be the star of the show this quarter, with estimates hovering around $4.6 billion. But, on the brighter side, HP's been smart with pricing, cost management, and a solid product mix, which could give the bottom line a nice little boost.
Now for the juicy bits. HP’s been making moves that could spell long-term gains. They’ve teamed up with INDO-MIM, big shots in Metal Injection Molding and additive manufacturing powder. This partnership is a major play in pushing HP further into the additive manufacturing space – think big potential in various industries.
Now I wanna consider dividends, which shows commitment to shareholder value. HP’s bumped up its planned dividend to $1.1024 per share, a 5% hike. They’ve been upping their dividend game for 12 years straight, boasting a sweet 3.89% yield on the current price. That’s really really good.
Financially, HP's been holding its ground. Their cash flow’s looking healthier, with a 147.7% increase in operating activities and a 214% jump in free cash flow. The company’s sitting on total assets of $36.63 billion as of July 31, 2023. This isn't that bad, right?
But wait, there’s more. Analysts are eyeing a revenue of $13.97 billion for Q1 2024, a 1% year-over-year improvement, and a current quarter EPS estimate showing a 13.2% rise. HP's valuation is also looking pretty attractive compared to the industry.
So, is HP Inc. a tech stock to watch? I really think so. Given their strategic partnership with INDO-MIM, a solid dividend history, and a set of financials that don’t scream “run for the hills”, HP might just be the underdog that could surprise us all post-earnings.
As always, whether you’re bullish or bearish, I'd like everyone to actually check out their earning call.
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