Shares of HP Inc. (NYSE:HPQ) experienced a significant decline, falling by 8.08% in pre-market trading on Wednesday, following the release of its fourth-quarter projections that failed to meet market expectations.
HP Inc. reported earnings of $0.93 per share, which aligned with analyst expectations. Revenue reached $14.05 billion, surpassing the consensus estimate of $13.99 billion and marking an increase from the previous year's $13.82 billion, according to Benzinga Pro.
Despite the revenue beat, HP's earnings forecast for the fiscal first quarter fell short of analyst predictions. The company anticipates earnings, excluding certain items, to range between 70 cents and 76 cents per share, while analysts expected 86 cents, as per Bloomberg data. For the fiscal year, HP projects profits between $3.45 and $3.75 per share, compared to the average estimate of $3.60.
Enrique Lores, HP's CEO, attributed the profit challenges to rising component costs rather than demand issues. He expressed optimism that part prices would decrease over the year.
Meanwhile, as per Benzinga Pro, HP's consensus price target is $33.88, with the highest target of $41 from JP Morgan and the lowest of $30 from Wells Fargo.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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