📊 HP shares: under pressure, but with an interesting vision for the future!
Shares of HP Inc. $HPQ fell more than a quarter after announcing quarterly results 11 %, reflecting the challenges associated with the personal computer and printing markets.
Weaker outlook for the PC market: Personal computer market recovery is slower than expected. Rising commodity costs are squeezing margins.
Print segment decline: HPmanagement estimates that the print market will decline by a low single-digit percentage by 2025. Despite this, the segment exceeded expectations and maintained solid margins (19.6% versus 18.9% last year).
💡 Innovation in AI-enabled PCs: AI-enabled PCs accounted for the largest share in Q4 15 % shipments. By 2025, this share is expected to grow to 25 %. HP is focusing on the commercial segment, which is growing faster than the consumer segment.
📊 Strong financial discipline:
Q4 2024 revenueup by 2 % year-over-year to $14.1 billion.
The company generated $3.3 billion in free cash flow and returned most of it to shareholders.
Increased annual dividend by 5 % to $1.16 per share.
🔮 Company Outlook:
Earnings Per Share (EPS) for Fiscal Year 2025: Expectations USD 3.45-3.75 vs. previous estimate USD 3.60.
The second half of the year should bring improvement due to cost optimization and growth in the premium segment.
HP plans to further strengthen its position in AI, commercial PCs and printing.
🌟 Competitive market
HP maintains a competitive edge in printing, where it is gaining share at the expense of competitors such as Xeroxwhich is facing a deep restructuring.
Manufacturers such as Qualcomm, Intel a AMD are bringing out new AI chips that will drive growth in the premium PC segment.
Despite the current challenges HP shows it has a clear strategy for the future. Its focus on innovation, financial stability and increasing shareholder value makes it an interesting opportunity for long-term investors in particular, in my view.
Do you see potential in this company, or would you rather wait for the markets to calm down? 💭🖥️
Last year I thought about buying $HPQ, but luckily I didn't and now I'm quite glad I did.
I used to have $HPQ in my portfolio for a while, but sold due to underperformance.
$HPQ is an uninteresting investment for me. The stock isn't growing that much and the results aren't great either.
You could find an option trade here, you scream😁
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I personally don't see much potential in $HPQ anymore :/
I think$HPQ is past its prime growth. I see more potential in $DELL at the moment.