HP’s Q1 results
HP’s (HPQ) earnings met expectations, while its revenues missed expectations in the first quarter of fiscal 2019. The company’s earnings were driven by share buyback plans, while revenue growth remained weak due to soft sales in both its personal computer and printing businesses. While the hardware company is facing a decline in demand for personal computers, the printing business is suffering due to weak supply demand.
After the earnings results, out of the 14 analysts covering HP, eight analysts have recommended a “buy” rating, while six have rated the stock a “hold.” None of the analysts have given the stock a “sell.” Analysts have set a target price of $25.77 for the stock and a median consensus estimate of $25.50. HP Inc. is now trading at a 6.5% discount to its consensus median target estimate. After the soft revenue results, J.P. Morgan slashed its price target to $22 from $24.