HP Q2 Results: Will weak revenues, poor forecast push share prices lower? Let’s Find Out!
HP Q1 results: Key insights
- The PC maker posted Q2 revenue of $12.91 billion, missing Wall Street estimates of $13.07 billion.
- HP reported a 29% drop in personal systems (PS) segment, which includes desktop and notebook PC businesses.
- HP expects demand for personal computers in the second half of this year to get stronger.
4. HP CEO hinted towards releasing a new PC in 2024 with AI enabled capabilities.
HP share price and HP results:
HP shares dropped 7% in pre-market trading on May 31, 2023. HP shares have lost about 24% of their value since their all time highs last hit in 2022 when work from home due to Covid-19 led to a surge in demand for personal computers.
However, ever since coronavirus led restrictions dropped, the company has witnessed a steady downturn in its computer sales, leading to poor revenue growth and below expectation profits.
HP share historical performance:
| 1 Day | 1 Month | 1 Year | 5 Years |
| -0.1% | +3.2% | -21% | +37% |
(Data as on May 30, 2023)
Decoding HP Q2 earnings:
HP Revenue
The PC maker posted Q2 revenue of $12.91 billion, missing Wall Street estimates of $13.07 bln. HP had reported earnings of $16 billion in the same quarter last year.
| Q2FY23 | Q2FY22 | % change | |
| Total Revenue | $12.9 billion | $16.9 billion | -22% |
HP net profit
HP reported quarterly adjusted earnings of 80 cents per share for the quarter ended in April. The mean expectation of fourteen analysts for the quarter was for earnings of 76 cents per share.
| Q2FY23 | Q2FY22 | % change | |
| Net Profit | $0.8 billion | $1.2 billion | -31% |
HP dividend
HP declared dividends of $0.3 per share, which led to a cash cost of $300 million to the company during the second quarter ended April 2023.
HP share price target
- Brokerage UBS raised its share price target to $31 from $30.
- Brokerage Bank of America raised its share price target to $27 from $26.
- Credit Suisse had a neutral rating on the stock with a $33 share price target.
This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.