Why HP Shares Are Surging Premarket Thursday

Zinger Key Points
  • HP reported Q2 FY24 revenue of $12.8 billion, beating the $12.6 billion consensus, with adjusted EPS of $0.82 surpassing expectations.
  • HPQ shares up premarket, with Q3 FY24 EPS guidance of $0.78-$0.92.

HP Inc. HPQ shares are trading higher after it reported second-quarter FY24 results.

Net revenue declined 0.8% Y/Y to $12.8 billion, beating the consensus of $12.6 billion.

Adjusted operating margin expanded 20 bps Y/Y to 8.8% in the quarter. 

By segment, Personal Systems net revenue rose 3% Y/Y to $8.4 billion with a 6.0% operating margin, and Printing net revenue fell 8% Y/Y to $4.4 billion with an operating margin of 19.0%.

In Personal Systems, total units rose 7% Y/Y, with Consumer PS units falling 1% Y/Y and Commercial PS units were up 12%.

Adjusted EPS rose 4% Y/Y to $0.82, surpassing the street view of $0.81.

Operating cash flow stood at $0.6 billion (-9% Y/Y), and free cash flow came in at $0.5 billion (-11% Y/Y) in the quarter.

The company exited the quarter with gross cash of $2.5 billion, including cash and cash equivalents of $2.4 billion.

The company returned $0.4 billion to shareholders in the form of dividends and share repurchases in the quarter.

Outlook: For the third quarter, HPQ expects adjusted EPS of $0.78-$0.92 vs. consensus of $0.85.

For FY24, the company projects adjusted EPS of $3.30-$3.60 (prior view $3.25-$3.65) vs. consensus of $3.43.

Investors can gain exposure to the stock via 3D Printing (The) ETF PRNT and First Trust S&P 500 Diversified Dividend Aristocrats ETF KNGZ.

Also Read: How To Earn $500 A Month From HP Stock Ahead Of Q2 Earnings Report

Price Action: HPQ shares are up 5.24% at $34.51 premarket at the last check Thursday.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesLarge CapNewsGuidanceDividendsBuybacksMoversBriefsStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!