HP Stock Flounders After Profit Disappointment

HP Inc. (NYSE:HPQ) is a Palo Alto, California-based company that provides personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services around the world. Shares of HP dropped 2.09% month-over-month as of late afternoon trading on Thursday, August 29, 2024. However, the stock was still up 18% in the year-to-date period.

The company unveiled its third quarter (Q3) fiscal 2024 earnings on August 28. In Q3 FY2024, HP delivered GAAP diluted net earnings per share of $0.65. That means diluted EPS came in at the lower end of its previously provided outlook of $0.63 to $0.77 EPS. Meanwhile, Q3 2024 net revenue climbed 2.4% year-over-year to $13.5 billion. HP reported net cash from operating activities of $1.4 billion and free cash flow of $1.3 billion.

Looking ahead, HP estimates that GAAP diluted net EPS will be in the range of $0.74 to $0.84 in the fourth quarter of fiscal 2024. Moreover, it anticipates full year diluted EPS in the range of $2.62 and $2.72. The company also expects to generate free cash flow in the range of $3.1 billion to $3.6 billion for the full year fiscal 2024.

Shares of HP currently possess a favourable price-to-earnings ratio of 12 at the time of this writing. HP stock offers a quarterly dividend of $0.28 per share. That represents a 3.1% yield as at close on August 29, 2024.