Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, June 2, 2023

Article Excerpt

HP INC., $30.55, New York symbol HPQ, is a hold. Demand for the company’s personal computers and printers jumped during COVID-19 lockdowns due to the shift to remote work and learning. However, sales continue to drop as the pandemic eases. In HP’s fiscal 2023 second quarter, ended April 30, 2023, revenue fell 21.7%, to $12.91 billion from $16.49 billion a year earlier. That also missed the consensus forecast of $13.04 billion. Personal computer sales (63% of the total) fell 29.1%, while sales of printers, ink and related products (37%) declined 4.6%. The lower revenue, plus rising costs for raw materials and labour, also cut HP’s earnings in the quarter by 30.8%, to $797 million from $1.15 billion a year earlier. Earnings per share declined at a slower rate of 25.9%, to $0.80 from $1.08, on fewer shares outstanding. That topped the consensus estimate of $0.76. For all of fiscal 2023, HP expects to earn $3.30 to $3.50 a share. The stock trades at just 9.0…