HP Expects Profit Decline in First Quarter

HP reported results in line with expectations for the fourth quarter of its fiscal year ending October 31, but announced that its earnings for the first quarter of the new fiscal year would fall short of expectations.

For the quarter ending October 31, HP achieved earnings of 93 cents per share, compared to 90 cents per share in the same period last year. Analysts had anticipated earnings in the range of 87 to 95 cents for the fourth quarter.

Net income was $906 million. The company’s revenues increased by 1.7%, reaching $14.06 billion, which was in line with the expectation of $13.99 billion.

HP indicated that it expects first-quarter earnings for the current fiscal year to be below Wall Street expectations, signaling continued fluctuations in demand within the personal computer market.

"You will see that we are expanding our artificial intelligence portfolio in PCs. We will also introduce a new AI feature in Print... we will be launching a new family of video conferencing systems," the company stated.

HP expects adjusted earnings per share in the first quarter to be between 70 cents and 76 cents, while analysts' estimates are at 85 cents.