HP forecasts earnings for the fiscal year, which begins in November.
This company, within the framework of drawing up its vision of the future in terms of corporate business and from the point of view of the level of financial efficiency of this activity, relies on the opinion that in the foreseeable prospect, there will be a revival on the personal computer market in the form of an increase in consumer demand. If this potential scenario passes the reality check and is implemented, it will mean a change in the negative trend in the mentioned commercial sector after a two-year recession. At the same time, there is no absolute guarantee that HP’s forecast will come true at least partially or completely.
The mentioned company also claims that its vision of future financial prospects coincides with analysts’ estimates. HP expects earnings, excluding some individual items, to be between $3.25 and $3.65 per share in fiscal year 2024. The relevant information is contained in the company’s statement, which was published last Tuesday, October 10. Analysts on average forecast $3.47 per share.
The free cash flow of the company in the new fiscal year should be from $3.1 billion to $3.6 billion. This is HP’s forecast. Analysts on average assume a free cash flow of $3.17 billion.
HP has faced a significant drop in its financial performance against the backdrop of a worsening situation with consumer demand in the personal computer market. Under the prevailing realities, a high level of inventory restrained the dynamic of falling prices. Businesses postponed purchases. Currently, there is an opinion that the negative state of affairs in the personal computer market has reached its peak, which means that the reverse trend is about to begin, which in current realities provides for a change of the negative vector to a positive one.
Gartner analysts said this week that PC shipments have reached an absolute minimum, which portends growth. In their opinion, the restoration of commercial indicators in this technological area will begin in the current quarter.
The Chief Executive Officer of HP Enrique Lores says that this company is well-positioned to ensure long-term sustainable growth. He stated that the brand introduces innovations in order to meet the needs of customers who change periodically. According to him, the company currently sees attractive opportunities to ensure profitable growth of its business but did not go into details.
In early October, it became known that HP would be releasing Chromebooks in India. This production project will be implemented within the framework of cooperation between the company and Google. For HP, operating in India means an opportunity to get an additional source of profit. Also, the production activity in this South Asian country is a way for the company and its partner to avoid restrictions on the import of Chromebooks, which are possible against the background of geopolitical tensions between Beijing and Washington, which has already caused mutual measures in the technology industry. HP is the leader in the Indian market of laptops and personal computers. The company’s share in this market is 31%.