Latest news with #HPInc
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a day ago
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HP Inc. (HPQ) Misses the Mark: No Positive Catalysts to Pull It Off the Sidelines
We recently published a list of . In this article, we are going to take a look at where HP Inc. (NYSE:HPQ) stands against other AI stocks on Wall Street's radar. On May 29, Morgan Stanley analyst Sanjit Singh raised the price target on Inc. (NYSE:AI) to $22.00 from $20 while keeping an 'Underweight' rating. Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation. On May 29, Morgan Stanley lowered the firm's price target on HP Inc. (NYSE:HPQ) to $26 from $29 and kept an 'Equal Weight' rating on the shares. HP Inc. is a technology company that specializes in personal computing and printing solutions. A laptop, showing off the companys sleek notebook computers and workstations. Discussing the FY25 guide-down, the firm noted that it is the impact of tariffs, execution, and management conservatism, leaving shares in 'the penalty box' regardless of a 'cheap' valuation. The firm also said that cost-cutting measures did not entirely mitigate these issues. As of now, HP's growth areas are too small and lack transparency, and aren't in a position to meaningfully influence the company's performance. Analysts have also forecast that cost reductions are only partially likely to protect profitability, resulting in an EPS for the fiscal year 2026 that is anticipated to be roughly on par with fiscal year 2024. Capital returns over the next few quarters may be restricted due to HP's increased leverage. The analyst further added that a lack of a positive company-specific catalyst keeps the firm on the sidelines. Overall, HPQ ranks 8th on our list of AI stocks on Wall Street's radar. While we acknowledge the potential of HPQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HPQ and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
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a day ago
- Business
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Evercore ISI Trims HP Inc's Price Target, Maintains Outperform Rating
Evercore ISI reduced its price target for HP Inc (NYSE:HPQ) from $32 to $29 on May 29, 2025, but maintained an Outperform rating on the company's shares. The firm cited HP's mixed second-quarter performance. A futuristic datacenter with servers and high-tech equipment, signifying the company's cutting-edge digital technology. HP reported $13.2 billion in revenue for Q2 2025, narrowly beating the consensus forecast of $13.1 billion. However, the company's earnings per share (EPS) of $0.71 missed Wall Street's expectation of $0.80. According to the earnings report, the Personal Systems segment drove a lot of the revenue growth. This segment, the report says, benefited immensely from Windows OS refresh demand in the Commercial sector. But the growth in the Personal Systems segment was offset by a 3% year-over-year constant currency decline in the Printing division. The Supplies segment revenue also fell by 3% at constant currency. Much of the decline, HP says, is down to 'challenges posed by global trade policies.' And in response, the company has revised its FY 2025 EPS outlook downward to a range of $3.00 to $3.30, a reduction of $0.45 at the midpoint. Evercore ISI views HP's updated guidance as a cautious approach given the current tariff and macroeconomic challenges. However, the firm expects the company to stabilize EPS and free cash flow on a year-over-year basis in the latter half of the fiscal year. HP Inc. (NYSE:HPQ) is a global technology company that provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services. It operates in two main segments: Personal Systems (includes laptops, desktops, and workstations) and Printing (covers printers, ink, and 3D printing solutions). The company sells to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors. While we acknowledge the potential of HP Inc. (NYSE:HPQ) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HPQ and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
Yahoo
a day ago
- Business
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HP Stock Falls 8% on Q2 Earnings Miss, Revenues Rise Y/Y
HP Inc. HPQ shares fell 7.8% during Wednesday's after-market hours after the personal computer (PC) maker reported lower-than-expected bottom-line results for second-quarter fiscal 2025 and issued a profit outlook for the fiscal third quarter that fell short of the Zacks Consensus reported second-quarter non-GAAP earnings of 71 cents per share, missing the consensus estimate by 11.3%. The bottom line declined 13% from the year-ago quarter's earnings of 82 earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 4.3%.HPQ's revenues increased 2.4% year over year to $13.2 billion, which missed the Zacks Consensus Estimate by 1.7%. The year-over-year growth was primarily driven by higher Personal Systems (PS) sales, which more than offset the negative impact of lower revenues in the Printing business. HP Inc. price-consensus-eps-surprise-chart | HP Inc. Quote PS revenues (68.2% of net revenues) came in at $9 billion, which improved 7% from the year-ago quarter's figure (8% up at constant currency or cc). The upside in this division was mainly driven by higher commercial volume, increased ASPs and momentum in Key Growth total PC units sold were up 6% on a year-over-year basis, an increase of 11% in Commercial PS shipments, partially offset by a 2% decrease in Consumer PS shipments. Revenues from the Commercial PS segment increased 9% year over year, while the Consumer PS segment sales increased 2%.The Printing business' revenues (31.8% of net revenues) decreased 4% year over year (down 3% at cc) to $4.2 billion. Weakness in the Commercial Printing business and Supplies led to an overall decline in the segment's Consumer Printing net revenues and Commercial Printing net revenues declined 3%. Supplies net revenues were down 5% (down 3% in cc) year over year. Total hardware units increased 1%, with Consumer Printing units up 3% and Commercial Printing units down 3%.The company witnessed growth across all regions. On a constant currency basis, the Americas rose 4.7%, the EMEA region witnessed growth of 1.5% and the Asia Pacific and Japan revenues increased 8.8% year over year. Segment-wise, PS' non-GAAP operating margin contracted 150 basis points (bps) to 4.5%. The Printing division's non-GAAP operating margin contracted 50 bps to 19.5%.HP's overall non-GAAP operating margin from continuing operations of 9% contracted 120 bps year over year. HP ended the fiscal second quarter with cash, cash equivalents and restricted cash of $2.73 billion, down from $2.89 billion at the end of the previous the quarter, HPQ generated $38 million worth of cash from operational activities while having negative free cash flow of $95 million. In the first half of fiscal 2025, it generated operating cash flow of $412 the second quarter, the company repurchased shares worth $100 million and paid $273 million in dividend payments. During the first half of fiscal 2025, it paid $546 million in dividends and bought back shares worth $200 million. For the third quarter of fiscal 2025, the company estimates non-GAAP EPS between 68 cents and 80 cents. The Zacks Consensus Estimate is pegged at 82 company lowered its bottom-line guidance for fiscal 2025. For fiscal 2025, it now expects non-GAAP EPS between $3.00 and $3.30, up from the previously guided range of $3.06-$3.36. The Zacks Consensus Estimate is pegged at $3.44 per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)HPQ expects its free cash flow to be in the range of $2.6-$3.0 billion for fiscal 2025. HPQ currently carries a Zacks Rank #3 (Hold).Paylocity Holding PCTY, StoneCo STNE and BlackBerry BB are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology STNE and BB sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks shares have declined 2.8% year to date. The Zacks Consensus Estimate for PCTY's full-year 2025 earnings is pegged at $6.95 per share, up by 4.51% over the past 30 days, indicating an increase of 0.99% from the year-ago quarter's reported shares have surged 67.4% year to date. The Zacks Consensus Estimate for STNE's full-year 2025 earnings is pegged at $1.43 per share, up by 3.62% over the past 30 days, indicating a gain of 5.93% from the year-ago quarter's reported shares have gained 8.2% year to date. The Zacks Consensus Estimate for BB's full-year 2025 earnings per share is pegged at 10 cents, unchanged over the past 30 days, indicating a gain of 400% from the year-ago quarter's reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HP Inc. (HPQ) : Free Stock Analysis Report Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
a day ago
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HP Inc (HPQ) Gets Price Target Cut as BofA Warns of Tariff Impact on 2025 Outlook
We recently published a list of . In this article, we are going to take a look at where HP Inc. (NYSE:HPQ) stands against other AI stocks on latest news and ratings. On May 28, BofA reduced its price target for HP Inc. (NYSE:HPQ) from $35 to $33 while maintaining a 'Neutral' rating on the stock. HP Inc. is a technology company that specializes in personal computing and printing solutions. The firm's rating was issued before the earnings report scheduled for May 28. The firm adjusted its expectations for the fiscal year 2025. While it originally expected that personal systems revenue would be more heavily weighted towards the second half, it now forecasts a more even distribution throughout the year due to tariffs-related demand shifts. A laptop, showing off the companys sleek notebook computers and workstations. The firm also noted how tariff impacts are a risk to HPQ's fiscal guidance unless it resorts to further cost-saving measures. Currently, the firm forecasts fiscal second-quarter earnings per share (EPS) at $0.78. This is slightly below the Street's consensus of $0.81. The firm is of the belief that EPS growth for the company will likely be from share repurchases, which has led to a neutral rating toward the stock. Overall, HPQ ranks 10th on our list of AI stocks on latest news and ratings. While we acknowledge the potential of HPQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HPQ and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
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2 days ago
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HP Inc (HPQ) Q2 2025 Earnings Call Highlights: Navigating Growth Amid Tariff Challenges
Revenue Growth: 5% increase in constant currency year-over-year. Personal Systems Revenue: Grew 8% in constant currency, driven by strong commercial performance. PC Commercial Revenue: Increased 9% year-over-year. Print Revenue: Declined 3% in constant currency. Operating Margin: 7.3%, impacted by approximately 100 basis points due to tariff-related costs. Non-GAAP Earnings Per Share: $0.71, impacted by $0.12 due to tariff-related costs. Gross Margin: 20.7%, down year-over-year due to increased tariff and commodity costs. Free Cash Flow: Slightly negative due to timing of payments for inventory actions. Shareholder Returns: Approximately $400 million returned through dividends and share repurchases. FY25 Non-GAAP EPS Guidance: $3 to $3.30. FY25 GAAP EPS Guidance: $2.32 to $2.62. Q3 Non-GAAP EPS Guidance: $0.68 to $0.80. Q3 GAAP EPS Guidance: $0.57 to $0.69. FY25 Free Cash Flow Guidance: $2.6 billion to $3 billion. Warning! GuruFocus has detected 4 Warning Sign with HPQ. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. HP Inc (NYSE:HPQ) delivered revenue growth for the fourth consecutive quarter, with a 5% increase in constant currency year-over-year. The Personal Systems segment saw an 8% revenue growth in constant currency, driven by strong commercial performance and demand for AI PCs. HP Inc (NYSE:HPQ) is accelerating its manufacturing footprint diversification, with plans to have nearly all products sold in North America built outside of China by June. The company introduced over 80 new products and services at the global AMPLIFY conference, receiving positive feedback from partners and customers. HP Inc (NYSE:HPQ) is on track to achieve at least $2 billion in gross annual run rate structural savings by the end of fiscal year 2025, exceeding previous goals. HP Inc (NYSE:HPQ)'s non-GAAP operating profit fell short of expectations due to additional tariff costs that could not be fully mitigated in the quarter. Print segment revenue declined 3% in constant currency, impacted by a slowdown in North America and weak demand in China. The company faced a net impact of approximately 100 basis points on non-GAAP operating profit due to tariff-related issues. HP Inc (NYSE:HPQ) moderated its guidance for the second half of the year due to macroeconomic uncertainties and potential impacts from trade policies. Free cash flow guidance was revised downwards, reflecting the impact of tariff-related costs and lower-than-expected working capital improvements. Q: Can you provide more context on your expectations for the PC market in the second half of the year? What factors are influencing your guidance? A: Enrique Lores, HP Inc's President and CEO, explained that while there was strong demand in the first half, they are being more prudent for the second half due to changes in economic conditions and announced price increases across the industry. They expect these factors to impact demand but aim to grow market share. Windows 11 remains a catalyst, and any stronger-than-expected demand will be reflected in their results. Q: How are your growth businesses performing, and what is their impact on overall revenue? A: Enrique Lores noted that while they haven't disclosed the overall size, growth businesses are expanding faster than core businesses and have higher gross margins. AI PCs, Workforce Solutions, and industrial print are key areas driving growth. AI PCs are on track to represent more than 25% of the PC business by year-end. Q: Are you expecting Personal Systems margins to be within the 5% to 7% range for the full year? A: Karen Parkhill, HP Inc's CFO, confirmed that they expect margins to be within the 5% to 7% range for the full year, likely in the lower half due to the impact in Q2, but with sequential improvement. Q: What are the key applications driving the shift towards AI PCs, and how does this impact pricing and growth expectations? A: Enrique Lores highlighted that AI PCs are seeing solid growth, with applications from over 100 software companies utilizing AI capabilities. AI PCs are expected to represent more than 35% of the PC mix by year-end, with prices 10% to 20% higher than regular PCs, impacting overall value. Q: How are you mitigating the impact of tariffs, and what are the expected outcomes? A: Enrique Lores detailed actions such as accelerating the shift of manufacturing out of China, changing logistics networks, and implementing targeted price increases. Karen Parkhill added that they expect to fully mitigate tariff costs by Q4 through these measures and additional cost savings. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
