HP Slides By in Q4

By Chris Lange Updated Jan 30, 12:45PM EST · Published Nov 26, 4:15PM EST

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HP Slides By in Q4 — © Justin Sullivan / Getty Images

HP Inc. (NYSE: HPQ | HPQ Price Prediction) released fiscal fourth-quarter financial results after markets closed Tuesday. The firm said that it had $0.60 in earnings per share (EPS) and $15.4 billion in revenue, compared with consensus estimates that called for $0.58 in EPS and $15.27 billion in revenue. The same period from last year had $0.54 in EPS and $15.37 billion in revenue.

Segment results were posted as follows:

Personal Systems net revenue was up 4% year over year (up 5% in constant currency) with a 5.3% operating margin. Commercial net revenue increased 8% and Consumer net revenue decreased 4%. Total units were up 8% with Notebooks units up 9% and Desktops units up 5%.

Printing net revenue was down 6% year over year (down 5% in constant currency) with a 15.6% operating margin. Total hardware units were down 9% with Commercial hardware units down 1% and Consumer hardware units down 10%. Supplies net revenue was down 7% (down 7% in constant currency).

Looking ahead to the fiscal first quarter, HP expects to see EPS in the range of $0.53 to $0.56. The consensus estimates are $0.54 in EPS and $14.69 billion in revenue for the quarter.

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Enrique Lores, president and CEO, commented:

2019 marks our third consecutive year of revenue, non-GAAP operating profit and non-GAAP earnings growth, with non-GAAP EPS up 11% and strong free cash flow of $4 billion. We delivered an excellent Q4, with 11% non-GAAP EPS growth. Our strategy is working, and we are confident in our business heading into FY20.

Shares of HP closed Tuesday at $20.05, within a 52-week range of $15.93 to $24.17. The consensus analyst price target is $19.95. Following the announcement, the stock was up 2% at $20.50 in the after-hours session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.