Latest news with #HPQ
Globe and Mail
7 hours ago
- Business
- Globe and Mail
Why HP Stock Sagged by 11% This Week
The combination of an earnings miss and disappointing guidance put the hurt on veteran tech stock HP (NYSE: HPQ) this week. Over the past five trading days the company's share price withered by 11%, according to data compiled by S&P Global Market Intelligence. Revenue and profitability went in opposite directions Just after market close on Wednesday, HP published figures from its fiscal second quarter of 2025, revealing that its net revenue was $13.2 billion. That was 3% higher than in the same period of fiscal 2024. The dynamic was markedly different on the bottom line, as non-GAAP (adjusted) net income sank to $678 million ($0.71 per share) from the year-ago profit of $812 million. Analysts weren't expecting such a steep drop in profitability; on average, they were modeling adjusted net income of $0.79 per share. On the plus side, the company beat the pundit consensus of under $13.1 billion for net revenue. In the earnings release, HP quoted CEO Enrique Lores as saying that during the quarter, the company had "delivered solid revenue growth, led by strong commercial performance in personal systems and continued momentum behind our future-of-work strategy." Earnings guidance trimmed HP is bracing for impact on tariffs, which affect its operations because many of its components are sourced abroad. It lowered its guidance for the entirety of the fiscal year, setting the forecast for adjusted per-share earnings at $3.00 to $3.30. That's down considerably from its previous estimate of $3.45 to $3.75. Free cash flow should come in at $2.6 billion to $3 billion, meanwhile. The PC market hasn't been lively for years, and given the enduring popularity of mobile devices, I don't expect this to change. That market will also be affected by the tariff war if it drags on. None of this makes me confident about HP stock. Should you invest $1,000 in HP right now? Before you buy stock in HP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and HP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
a day ago
- Business
- Yahoo
Watch These HP Price Levels as Stock Tumbles After Company Cuts Outlook Due to Tariffs
HP shares fell sharply Thursday after the company missed analysts' profit expectations and issued a light outlook, citing increased costs from tariffs. Thursday's decline followed a breakdown from a rising wedge pattern in yesterday's trading session. Investors should watch important support levels on HP's chart around $25, $23 and $21, while also monitoring a key overhead area near $ (HPQ) shares plunged Thursday after the PC maker missed analysts' profit expectations and issued a light outlook, citing increased costs from tariffs. The PC maker said its guidance reflects tariff costs and actions taken to mitigate associated trade risks, adding that it had responded quickly to expand its manufacturing footprint and reduce its cost structure. CEO Enrique Lores said during the earnings call that additional tariff costs "could not be fully mitigated in the quarter," and that HP has "implemented price increases to help offset cost pressure." HP shares fell more than 8% Thursday, posting the biggest declines in the S&P 500. The stock has lost nearly a quarter of its value so far in 2025 as investors assess the cost of the company's ongoing efforts to diversify its supply chain while it navigates the Trump administration's unpredictable trade policies. Below, we take a closer look at HP's chart and use technical analysis to identify price levels worth watching out for. Since bottoming out early last month, HP shares have staged a countertrend rally, forming a rising wedge pattern in the process. In an ominous sign, the stock broke down below the pattern's lower trendline on above-average volume in Wednesday's trading session ahead of the company's quarterly report, paving the way for a continuation move lower. It's also worth pointing out that the relative strength index has recently fallen below the 50 threshold, signaling weakening price momentum. Let's identify three important support levels to watch and also locate a key overhead area worth monitoring during future upswings. The first lower level to watch sits around $25, right about where the stock closed on Thursday. This area may provide support near a brief period of consolidation within the rising wedge pattern and the prominent September 2023 trough. A move below this level could see HP shares fall to the $23 region. The price may attract support here near the low of the stock's first minor dip after bouncing from its early-April low. Selling below this level opens the door for the shares revisiting lower support at $21. Investors may seek longer-term buy-and-hold entry points in this area near last month's tariff-driven low. During future upswings in the stock, investors should monitor the $29 area. A recovery effort into this region would likely meet overhead resistance near the rising wedge pattern's peak, which also closely aligns with a temporary pause in the stock's downtrend during March. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia
Yahoo
a day ago
- Business
- Yahoo
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
- Yahoo
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
- Business
- Yahoo
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
