BalkansCat HPQ Stock: Investment Thesis In summary, HP Inc. (NYSE:HPQ) is a solid company with stable margins in an industry with few players and limited growth, which doesn't attract new entrants. Over the years, HP’s invested capital has been decreasing, coupled with a rise in product prices, which consequently boosted its ROIC. My thesis is focused on the generous shareholder yield that HPQ stock will pay investors over the years due to the 100% cash flow distribution policy that the company has in p ...

mixetto/E+ via Getty Images Investment summary My previous investment thought on HP Inc. (NYSE:HPQ) (published in March) was a hold rating because the valuation and demand outlook were not attractive. I remain on the sidelines for HPQ as the earnings outlook remains uncertain, despite the strength seen in the commercial PC segment, given the uncertain macro backdrop, non-existence of a growth catalyst and competitive pressure on margins in the print segment, and an elevated inventory level. 3Q24 results ...

HP Inc. (NYSE:HPQ) Goldman Sachs Communacopia + Technology Conference September 9, 2024 1:50 PM ET Company Participants Enrique Lores - CEO Conference Call Participants Michael Ng - Goldman Sachs Michael Ng Great. Well, welcome to the HP Inc. fireside chat at the Goldman Sachs Communacopia and Technology Conference. I have the privilege of introducing Enrique Lores, CEO of HP. Enrique has been in HP for nearly 35 years. And prior to taking over as CEO in 2019, he served as President of the Printing business ...

HP Inc. (NYSE:HPQ) Goldman Sachs Communacopia + Technology Conference September 9, 2024 1:50 PM ET Company Participants Enrique Lores - CEO Conference Call Participants Michael Ng - Goldman Sachs Michael Ng Great. Well, welcome to the HP Inc. fireside chat at the Goldman Sachs Communacopia and Technology Conference. I have the privilege of introducing Enrique Lores, CEO of HP. Enrique has been in HP for nearly 35 years. And prior to taking over as CEO in 2019, he served as President of the Printing business ...

Shares of the computer and printer company rallied on optimism for AI PCs and cost cuts.Shares of HP (HPQ 2.42%) were rallying in Thursday trading, up as much as 6.1% before settling into a 3.8% gain as of 1:24 p.m. ET.After Hewlett-Packard split into two companies, HP Inc. now handles the low-growth businesses of PCs and printers/ink. And the growth challenges were on display when the company released earnings last night.Still, the stock rallied today on optimism that artificial intelligence (AI) PCs will ...

wellesenterprisesHP stock: previous thesis and FY Q3 recap I last wrote on HP Inc. (NYSE:HPQ) about four months ago. As you can see from the screenshot below, that article was titled "HP Inc.: Buy Cyclical Stocks Near Cyclical Lows" and was published at Seeking Alpha on April 26, 2024. The title already gave the thesis away, which recommends a buy rating judging by the status of the cycle. Quote: To conclude, my final verdict is that the upside potential outweighs the downside risks. As such, I rate HPQ ...

HP (HPQ) reported $13.52 billion in revenue for the quarter ended July 2024, representing a year-over-year increase of 2.5%. EPS of $0.83 for the same period compares to $0.86 a year ago.The reported revenue represents a surprise of +1.29% over the Zacks Consensus Estimate of $13.35 billion. With the consensus EPS estimate being $0.86, the EPS surprise was -3.49%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next ...

HP Inc.’s (HPQ) third-quarter fiscal 2024 non-GAAP earnings of 83 cents per share missed the Zacks Consensus Estimate of 86 cents. The bottom line declined 3.5% year over year and came within the company’s guidance of 78-92 cents. The decline in the bottom line was due to competitive pricing and higher commodity costs.HPQ’s net revenues of $13.5 billion surpassed the Zacks Consensus Estimate of $13.35 billion. The figure improved 2.4% from the prior-year quarter’s level of $13.2 billion. The better-than-exp ...

About this content About Jamie Ashcroft Jamie Ashcroft, the News Editor for Proactive UK, has developed an impressive career in financial journalism, focusing on the small-cap sector for over fourteen years. Before joining the Proactive team, he was a stockbroker during the global financial crisis, a role that complemented his educational background - a first-class degree in Business and Economics and qualifications in software design and development. As one of the early external hires at Proactive in 20 ...

Financial Data and Key Metrics - Revenue grew 2% YoY, marking the first revenue growth in nine quarters, driven by strong performance in Personal Systems [8] - Non-GAAP operating profit declined 7% YoY, and non-GAAP EPS was within the previously provided outlook range but below expectations [9] - Free cash flow was $1.3 billion in Q3, with $0.9 billion returned to shareholders through repurchases and dividends [20] - Personal Systems revenue increased 5% YoY, with operating profit at 6.4%, in line with expectations [17] - Print revenue declined 3% YoY, with operating profit at 17.3%, below expectations due to softer demand and aggressive pricing [19] Business Line Performance - Personal Systems saw growth in high-value categories, including workstations and consumer premium, with gaming revenue growing QoQ in line with seasonality [17] - Print business faced challenges with slower market recovery, particularly in China, but saw growth in home and office segments excluding China [19] - AI PC shipments are ramping up, with positive initial reactions, and the company expects AI PCs to represent 50% of shipments by 2027 [18][44] Market Performance - Americas, EMEA, and APJ regions each grew 3% in constant currency [25] - PC market recovery was strong, particularly in commercial segments, with enterprise growing close to 5% and government between 6% and 7% [50] - Print market share increased both YoY and sequentially, with momentum in industrial graphics and supplies [29] Company Strategy and Industry Competition - The company is accelerating its Future Ready program, aiming to achieve 80% of the three-year structural cost run-rate target by the end of 2024 [9] - Investments in AI and hybrid work experiences are central to the company's strategy, with a focus on delivering new AI experiences for customers [21] - The company is leveraging AI to reduce customer call times and improve deal quotes, with further cost reductions planned in the print business [30][32] Management Commentary on Operating Environment and Future Outlook - Management expects the PC commercial momentum to continue, but the print market recovery will remain slower than expected [20] - The company is moderating its expectations for Q4 and the full year, with non-GAAP EPS expected to be in the range of $3.35 to $3.45 for FY 2024 [35] - The competitive pricing environment, particularly in print, is expected to persist, with Japanese competitors benefiting from a weaker yen [47] Other Important Information - The company acquired Cybercore Technologies to strengthen its security expertise and enhance offerings [14] - HP received a $50 million award from the US Department of Commerce to modernize its microfluidics semiconductor fab in Corvallis, Oregon [15] - The company achieved a 27% reduction in value-chain greenhouse gas emissions in 2023 and a 62% reduction in single-use plastic packaging [16] Q&A Session Summary Question: Print Margins in Fiscal 2024 - Print margins were impacted by aggressive pricing and a challenging market environment, particularly in China [38] - The company expects Q4 print margins to improve due to seasonal strength and accelerated cost-saving actions [39] Question: AI PCs and Market Impact - AI PC adoption is expected to be faster in consumer segments, with next-gen AI PCs projected to represent 50% of shipments by 2027 [42][44] Question: Commercial PC Recovery - Commercial PC demand is recovering, with enterprise growing close to 5% and government between 6% and 7%, driven by aging installed bases and Windows 11 adoption [50][51] Question: Cost Savings and Reinvestment - The company is accelerating cost-saving initiatives to offset market challenges while maintaining investments in long-term growth areas [53] Question: Capital Allocation and Share Repurchases - The company increased its share repurchase authorization to $10 billion, reaffirming its commitment to returning 100% of free cash flow to shareholders [61] Question: Free Cash Flow and Future Ready Program - Free cash flow is expected to remain strong, with the Future Ready program's cash outlays estimated at $300 million for FY 2024 [69] Question: Print Hardware Strategy and KPIs - The company is placing profitable hardware units to gain market share, with Instant Ink revenue and subscribers continuing to grow [72][73] Question: Personal Systems Seasonality - Q4 Personal Systems revenue is expected to increase sequentially, though consumer weakness may result in less seasonal growth than historically [75] Question: Federal Government Business - Federal government business grew between 6% and 7% in Q3, with strong momentum expected to continue in the second half [80] Question: Windows 10 End-of-Life and Refresh Cycle - The majority of the commercial PC refresh cycle is still ahead, with momentum expected to continue leading up to Windows 10 end-of-life in 2025 [83]