HP shares fall despite good results
Shares of technology giant HP Inc. fell more than 3% in extended trading on Tuesday, even though the company reported strong overall results and said it plans to launch its first computers with artificial intelligence in the second half of 2024. HP CEO Enrique Lores came up with the news in an interview on Tuesday.
The past year has been a challenging one for the company, yet Lores confirmed that HP is ready to deliver its AI-enabled PCs in 2024 as planned, an event he expects to be a significant catalyst for the expansion of the personal computer industry.
Lores and company are clearly optimistic about the potential impact of AI on personal systems sales in 2024 and beyond. This optimism is based on the progress made in reducing costs and the hope for future sales increases. Enrique Lores further stated that the company has not felt any particular impact on holiday sales due to the ongoing conflict in the Middle East.
As for financial forecasts, HP Inc (HPQ) provided a cautious outlook, saying that adjusted earnings are likely to be between 76 cents and 86 cents per share in the first quarter. This forecast is somewhat in line with the 86 cents per share forecast by analysts polled by FactSet.
HP Inc, the well-known Silicon Valley heavyweight that smelled success in the garage, posted net income for its fiscal fourth quarter earlier this week. The company revealed net income of $900 million, or 90 cents per share. That's a significant increase from the net income of $800 million, or 82 cents per share, reported in the same quarter last year. Adjusted earnings were 97 cents per share.
