HP earnings report Q4 2024

HP forecast its first-quarter revenue beneath Wall Road expectations on Tuesday, in an indication of persistent choppiness in demand within the private computer systems market.

PC makers have seen demand retreat from its peak in the course of the pandemic, when clients stocked up on tech merchandise. Moreover, demand for AI-powered PCs has remained muted within the mass market even because it elevated within the company and academic sectors due to companies and establishments seeking to improve their gadgets.

Whereas AI PCs are anticipated to characterize 43% of all PC shipments by 2025, they solely accounted for an estimated 17% this 12 months, in keeping with analysis agency Gartner. AI PCs haven’t boosted the general PC demand as “patrons have but to see their clear advantages”, Gartner analyst Mikako Kitagawa mentioned.

Based on analysis agency IDC, international shipments of conventional PCs dipped 2.4% over the 12 months earlier to 68.8 million models within the third quarter.

HP expects its adjusted revenue per share to be between 70 cents and 76 cents for the primary quarter, beneath analysts’ estimate of 85 cents, in keeping with information compiled by LSEG.

“We’ve stock-compensation expense that is greater in first quarter and it will get higher in subsequent quarters,” mentioned Chief Monetary Officer Karen Parkhill.

“We’re taking pricing and price actions to offset among the margin headwinds within the private methods and that is going to have a extra vital affect within the again half.”

The corporate reported a 1.7% enhance in income to $14.1 billion for the fourth quarter ended Oct. 31, in contrast with the estimates of $13.99 billion.

The PC maker’s adjusted revenue 93 cents per share met expectations.

For the fiscal 2025, the corporate forecast its adjusted revenue to be between $3.45 and $3.75 per share, the midpoint of which is in keeping with analysts’ estimate.