HP Inc. ($HPQ) Earnings (Q1 FY22)

HP Inc. ($HPQ) Earnings and Opinions:


HP Inc. ($HPQ) is a company that creates personal computing devices in America and Internationally. The company was known as Hewlett-Packard Company, but changed its name to HP Inc. in 2015. The company was originally founded in 1939 and is currently headquartered in Palo Alto, California. 


HP Inc. Revenue and EPS Results

  • US GAAP EPS (diluted) were $0.99 beating the expectations of $0.92-$0.98
  • US GAAP Net Revenue was $17B beating expectations of $16.52B 
  • EPS was up 19% (YOY) and Revenue was up 8.80% (YOY)
HP Inc. Breakdown of Revenue
  • Notebooks generated $8.42B up 14% (YOY)
  • Desktops generated $2.81B up 17% (YOY)
  • Workstations generated $534M up 40% (YOY)

HP Inc. Geography Breakdown
  • Americas generated 40% of net revenues down 1% (YOY)
  • EMEA generated 35% of net revenues up 8% (YOY)
  • Asia-Pacific generated 25% of net revenues up 30% (YOY)

Opinion:
HP Inc. ($HPQ) is a company with a solid track record. It has never been a company with a huge amount of growth, but seen as more of a value stock. HP Inc. initiated its dividend in 2013 and has shown increases in its dividend distribution. I would start considering this as a solid dividend growth stock if it can continue to grow its EPS and dividend distribution. The company had a solid YOY track with growth in its EPS and Revenue. Asia-Pacific growth is one that stood out to me, if they can solidly grow in that region and continue to rack up revenues in Americas and EMEA consistently, I could see this as an addition to my portfolio. The expectations for next quarter worry me a tad bit because the guidance shows numbers equal to this quarter. I am not entering into a position at this current moment because I feel like I could get higher returns elsewhere. If you are looking for stocks to generate income while sustaining normal returns, I believe this could be a solid play for you.


*Information attained from Yahoo Finance and Nasdaq

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