By Denny Jacob
HP revenue declined at a lower rate for the third consecutive quarter, a sign the company believes points to market stabilization as it expects the PC market to grow in 2024.
The computer and printer maker logged earnings of $622 million, or 62 cents a share, for the first quarter ended Jan. 31, up from $469 million, or 47 cents a share, a year earlier. Adjusted earnings were 81 cents a share, matching analysts’ estimates.
Revenue declined 4.4%, to $13.19 billion, from $13.8 billion. Analysts polled by FactSet expected $13.56 billion.
“We continue to see…a more stable but still volatile environment,” Chief Executive Enrique Lores said in an interview.
Personal systems revenue declined 4%, to $8.81 billion, from a year earlier, while print revenue tumbled 5%, to $4.38 billion, during the same period.
Lores noted that for PCs, the Palo Alto, Calif.-based company saw more pressure on the price of the low-end categories than it was expecting. It also saw more softness in demand from the federal space in the U.S. given the ongoing efforts to pass a full-year budget plan. On the positive end, it saw strengths in small- and mid-size businesses and PC growth in Europe for the first time in a while, says the chief executive.
HP trimmed its forecasted earnings per-share range to between $2.61 and $3.01, down from its prior guidance between $2.68 and $3.08. It maintained its adjusted earnings per-share guidance in the range of $3.25 and $3.65 as well as free cash flow between $3.1 billion and $3.6 billion.
“When we look at the full year for 2024, we continue to believe that the PC market will go back to growth. It is going to be more driven by the second half than the first half, but we maintain our confidence in this happening,” said Lores.
Write to Denny Jacob at denny.jacob@wsj.com