HP (NYSE:HPQ) reported fiscal fourth-quarter earnings that surpassed Wall Street estimates, but its weaker-than-expected guidance for the current quarter sent shares plunging over 8% in pre-market today.
For the fourth quarter, HP posted adjusted earnings per share (EPS) of $0.93, in line with analyst expectations, and revenue of $14.1 billion, slightly exceeding the Street consensus estimate of $13.99 billion. Personal systems, the company’s largest segment, saw net revenue climb 9% year-over-year to $11.5 billion, while printing net revenue edged up 1% to $4.5 billion.
Despite the solid quarterly results, HP’s outlook for the first quarter of fiscal 2025 disappointed investors. The company projected adjusted EPS between $0.70 and $0.76, significantly below the Wall Street analysts’ estimate of $0.86.
Looking further into fiscal 2025, HP provided guidance for adjusted EPS in the range of $3.45 to $3.75 and projected free cash flow between $3.2 billion and $3.6 billion.