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HP Reports Second Consecutive Quarter of Revenue Growth

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HP Inc. today reported financial results for its fourth quarter, which consisted of the three months ended October 31st.

It was a bit of a mixed bag for HP. Although it was the company’s second quarter of revenue growth, earnings were down. One bright spot for the Printing business was that total print hardware units were up about 10 percent year-over-year.

Fourth Quarter

Net revenue was $14.1 billion, up 1.7 percent year-over-year, and net earnings were $0.9 billion, down 7 percent year-over-year. Earnings per share were $0.93, above HP’s previously provided outlook of $0.74 to $0.84 per share. 

Fourth-quarter segment results are as follows:

Printing Business

Printing net revenue was $4.5 billion, up 1 percent year-over-year, with a 19.6 percent operating margin, and operating profit was $3.3 billion, down 2.4 percent year-over-year.

Consumer Printing net revenue was up 3 percent and Commercial Printing net revenue was down 1 percent. Supplies net revenue was up 2 percent. Total hardware units were up 9.5 percent, with Consumer Printing units up 10 percent, and Commercial Printing units up 9 percent.

Personal Systems Business

Personal Systems net revenue was $9.6 billion, up 2 percent year-over-year with a 5.7 percent operating margin, and operating profit was $2.2 billion, up 4.6 percent year-over-year.

Consumer PS net revenue was down 4 percent and Commercial PS net revenue was up 5 percent. Total units were up 1 percent, with Consumer PS units down 3 percent, and Commercial PS units up 4 percent. 

“We are pleased with our Q4 performance where we saw revenue growth for the second consecutive quarter, driven by steady progress in Personal Systems and Print,” said Enrique Lores, HP President and CEO. “With momentum heading into FY25, we are well-positioned to capitalize on the commercial opportunity and lead the future of work.”

“In FY24 we drove non-GAAP EPS and free cash flow growth which allowed us to return approximately $3.2 billion to shareholders,” commented HP CFO Karen Parkhill. “As we look ahead, we are well positioned to deliver solid growth across revenue, non-GAAP net earnings, EPS and free cash flow in FY25. And given our confidence in the future, we are raising our annual dividend by 5 percent.”

Full-Year 2024 Results

HP’s full-year 2024 EPS were $2.81, above HP’s previously provided outlook of $2.62 to $2.72 per share.  Net revenue was $53.6 billion, down 0.3 percent year-over-year, and net earnings were 2.8 billion, down 15 percent year-over-year.

Forecast

For its fiscal 2025 first quarter, HP estimates EPS to be in the range of $0.57 to $0.63. For its complete fiscal-year 2025, it estimates EPS to be in the range of $3.06 to $3.36.

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