HP Inc. (NYSE:HPQ) shares are trading higher after it reported second-quarter FY24 results.
Net revenue declined 0.8% Y/Y to $12.8 billion, beating the consensus of $12.6 billion.
Adjusted operating margin expanded 20 bps Y/Y to 8.8% in the quarter.
By segment, Personal Systems net revenue rose 3% Y/Y to $8.4 billion with a 6.0% operating margin, and Printing net revenue fell 8% Y/Y to $4.4 billion with an operating margin of 19.0%.
In Personal Systems, total units rose 7% Y/Y, with Consumer PS units falling 1% Y/Y and Commercial PS units were up 12%.
Adjusted EPS rose 4% Y/Y to $0.82, surpassing the street view of $0.81.
Operating cash flow stood at $0.6 billion (-9% Y/Y), and free cash flow came in at $0.5 billion (-11% Y/Y) in the quarter.
The company exited the quarter with gross cash of $2.5 billion, including cash and cash equivalents of $2.4 billion.
The company returned $0.4 billion to shareholders in the form of dividends and share repurchases in the quarter.
Outlook: For the third quarter, HPQ expects adjusted EPS of $0.78-$0.92 vs. consensus of $0.85.
For FY24, the company projects adjusted EPS of $3.30-$3.60 (prior view $3.25-$3.65) vs. consensus of $3.43.
Investors can gain exposure to the stock via 3D Printing (The) ETF (BATS:PRNT) and First Trust S&P 500 Diversified Dividend Aristocrats ETF (NASDAQ:KNGZ).
Also Read: How To Earn $500 A Month From HP Stock Ahead Of Q2 Earnings Report
Price Action: HPQ shares are up 5.24% at $34.51 premarket at the last check Thursday.
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