HP Inc (NYSE:HPQ) lifted 2.1% in after-hours trade on Wednesday after the company reported Q2 earnings results, posting higher-than-expected net revenue, while adjusted EPS came in at 82 cents versus 81 cents expected.
HP Inc reported a net revenue of $12.8 billion, marking a slight decrease of 0.8% year-on-year, but beating estimates of $12.59 billion. Personal systems revenue saw a year-on-year increase of 3.1%, reaching $8.43 billion, which surpassed the estimated $8.28 billion.
However, printing revenue fell by 7.8% year-on-year to $4.37 billion, slightly under the estimated $4.38 billion.
CEO/President Enrique Lores said, "As the market recovers and new AI PCs are introduced, we are well positioned to drive profitable growth across our business."
Meanwhile, Goldman Sachs analysts stated in a flash note following the results, "We expect HPQ stock to be mixed following an in-line quarter and a narrowed F2024E EPS guidance with an unchanged midpoint."
Looking ahead, HP Inc forecasts an adjusted EPS in the range of 78 to 92 cents for the third quarter, with the estimate being 85 cents. For the full year, the company anticipates an adjusted EPS of $3.30 to $3.60, slightly adjusting its previous forecast of $3.25 to $3.65. The estimate stands at $3.42.
The company's free cash flow forecast remains unchanged at $3.1 billion to $3.6 billion, with the estimate being $3.13 billion.
