Takeaways
- HP released 2024 profit guidance in line with estimates and announced a 5% dividend increase.
- CEO Enrique Lores said the PC and printer maker is well-positioned to generate sustainable long-term growth.
- The company increased its annual dividend from $1.05 to $1.1024 per share.
HP (HPQ) shares rose after the PC and #39;Printers announced 2024 profit guidance in line with estimates and increased its dividend.
The company said it sees fiscal 2024 earnings per share (EPS) in a range of $3.25 to $3.65, in line with analyst forecasts. It expects free cash flow to be between $3.1 billion and $3.6 billion.
CEO Enrique Lores said HP is “well-positioned for long-term sustainable growth.” He highlighted the company’s “Future Ready” plan to strengthen its core business, accelerate service expansion, build new operational capabilities and improve structural costs. Chief Financial Officer Marie Myers added that HP's financial outlook “reflects continued progress against our strategic priorities.”
The company also announced that it was increasing its annual dividend by 5%, to $1.1024 per share from $1.05.
The news arrived a Just two months after HP cut its 2023 outlook, warning that the PC and printer market has not improved as quickly as expected.
HP shares were up 1.6% in early trading at 11 a.m. ET Wednesday after the news, and have gained about 5% since hitting an 11-month low in late September.
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Source: investopedia.com