HP Inc. (HPQ) reported fiscal fourth-quarter earnings that narrowly missed revenue projections but otherwise aligned with analysts’ expectations. Enrique Lores, the CEO and President of HP, is optimistic about the company’s earnings projection and the revival of PC demand through 2024, despite this.
In addition to discussing the most recent earnings results, Lores also talks with Yahoo Finance Executive Editor Brian Sozzi about managing operating margins, when AI PCs will be released, and HP’s position in the market given the recent changes that have affected other developers.
Although consumer PC sales are still growing at a rate of 5%, which is in line with HP’s own projections, Lores insists that this “supports the momentum that we start seeing” for the first part of 2024.
Lores previously described HP’s AI PC units as “a huge opportunity to really bring energy to the category” during an earnings call back in May. HP plans to ship these units in the second half of 2024.
When discussing the final market share of its new hardware, Lores emphasises that “there is a difference between launching and penetration.” “Our projection is that the penetration of the AI PCs will be between 40 and 60% three years after launch.”
Additionally, Lores reassures customers that they remain “a key area of focus” and that the tech company will prioritise data privacy while expanding its artificial intelligence-powered portfolio, in the face of growing regulatory concerns and consumer fears regarding AI.
HP Inc. reported its earnings, which were in line with expectations despite a slight decline in revenue. Now let’s take a closer look at the company’s future. It’s nice to see you again, Enrique Lores, CEO of HP Inc. We appreciate you spending some time with us on this. So give us a brief rundown of the quarter. Regarding earnings, I believe there were apprehensions on the street regarding the performance of this quarter. In what way did you observe it?
“I think it was a good solid quarter,” stated Enrique Lores. In comparison to certain expectations, we exceed them. Our EPS increased by 10% annually, but what matters most is that the growth we have achieved this year is evident. It was a difficult year in terms of demand. We did a good job running the company. We’ve kept our cost structure in check. We have increased our share, particularly in the PC categories where we desired. In other words, we concluded the year strongly, which gives us optimism for the upcoming fiscal year, 24.”
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