Shares of HP Inc (NYSE:HPQ) were little changed in after-hours trading after the personal computer manufacturer reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $0.82, which beat analysts’ consensus estimate of $0.81 per share. Sales decreased by 0.9% year-over-year, with revenue hitting $12.8 billion. This beat analysts’ expectations of $12.611 billion.
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Looking forward, management now expects adjusted earnings per share for Q3 2024 and FY 2023 to be in the ranges of $0.78 to $0.92 and $3.30 to $3.60, respectively. For reference, analysts were expecting $0.85 per share for the former and $3.43 per share for the latter.
HPQ Returns $400M to Shareholders
During the third quarter, HPQ returned over $400 million to shareholders. Dividends made up $300 million, or $0.2756 per share, while buybacks made up the remaining $100 million. The firm has regularly repurchased its shares in each of its recent quarters (as demonstrated in the image below).
Is HPQ Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on HPQ stock based on two Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 11% rally in its share price over the past year, the average HPQ price target of $30.75 per share implies 7.38% downside risk.
