HP Inc. (HPQ, Financial) just dropped a bombshell—and not in a good way. Shares cratered over 13% as the company reported mixed fiscal 2024 results that left investors scratching their heads. While full-year revenue of $53.6 billion was nearly flat (down just 0.3%), the real eye-catcher was the drop in GAAP EPS, which fell 14% to $2.81. Sure, that beat guidance, but let's not sugarcoat it—profits are down, and the market noticed. Meanwhile, the non-GAAP EPS of $3.38 offered some relief, up 3% year-over-year, but it wasn't enough to shake off concerns about HP's trajectory.
CEO Enrique Lores tried to rally the troops, calling out "steady progress" in the Personal Systems and Printing segments, while CFO Karen Parkhill touted the company's ability to return $3.2 billion to shareholders through buybacks and dividends, including a fresh 5% dividend hike. Sounds nice, right? Except, the Q1 2025 guidance didn't exactly scream confidence. With EPS forecasted at $0.70 to $0.76, investors are left wondering: Is this the calm before the storm or just a flatline?
Here's the kicker: HP's free cash flow and buyback game are strong, but the bigger story is the slowing growth and margin pressures. Sure, they're positioned for "solid growth" in fiscal 2025, but the bar feels pretty low. The question now is whether HP can deliver a comeback story—or if this is as good as it gets. For investors, it's a wait-and-see game, and right now, the patience seems thin.
