HP Returns to Revenue Growth in Q3 2024, but Profitability Remains Under Pressure
Palo Alto, California – August 29,2024 – HP Inc. reported its third-quarter earnings for fiscal year 2024, ending July 31,2024, showcasing a return to revenue growth after two years of decline. The company achieved a net revenue of $13.5 billion, markinga 2.4% increase compared to the same period in fiscal year 2023. This positive development marks HP’s first year-over-year revenue growth since the third quarter of fiscal year 2022.
However, the company’s profitability remains under pressure. While revenue increased, HP’s operating profit margin dipped to 7%, a 0.2 percentage point decrease compared to the same period last year. Additionally, net incomefor the third quarter of fiscal year 2024 stood at $600 million, representing a 16% decline year-over-year.
HP’s earnings per share (EPS) for the quarter came in at $0.65, falling short of the company’s previous guidanceof $0.63 to $0.77 and lagging behind the $0.76 EPS reported in the same quarter last year.
Enrique Lores, President and CEO of HP, expressed satisfaction with the return to revenue growth, highlighting the company’s commitment to innovation, as exemplified by the launchof its new AI PC product line. He emphasized HP’s focus on strategic plans that prioritize opportunities for long-term profitability growth while navigating a dynamic environment.
We are pleased to see revenue growth return and are proud of the innovations we delivered this quarter, including our new generation of AI PCs, said Lores. We will continue to focus on our strategic plan, prioritizing opportunities that drive long-term profitable growth while taking decisive action to navigate the dynamic environment.
A closer look at HP’s business segments reveals a mixed performance. The Personal Systems segment, which includes PCs and workstations, generated $9.4 billion inrevenue, representing a 5% year-over-year increase. This segment’s operating profit margin reached 6.4%.
Conversely, the Printing segment experienced a 3% decline in revenue, reaching $4.1 billion. Despite this decrease, the segment’s operating profit margin remained strong at17.3%.
Looking ahead, HP anticipates a GAAP diluted EPS of $0.74 to $0.84 for the fourth quarter of fiscal year 2024. For the full fiscal year 2024, the company projects a GAAP diluted EPS of $2.62 to $2.72.
While HP’s return to revenue growth is a positive sign, the company faces ongoing challenges in maintaining profitability. The decline in net income and EPS, coupled with the shrinking operating profit margin, indicate that HP needs to address cost management and efficiency issues to bolster its financial performance.
The company’s focus on innovation, particularly in the AI PC space, is a key strategy for future growth. However, the success of this strategy will depend on the company’s ability to effectively leverage AI technology and cater to evolving customer needs.
Overall, HP’s third-quarter earnings report presentsa mixed picture. While the return to revenue growth is encouraging, the company needs to address profitability concerns and capitalize on its innovation initiatives to ensure sustainable long-term growth.
【source】https://www.ithome.com/0/791/975.htm
Views: 0