HP forecasts 2024 profit in line with estimates, boosts annual dividend

HP Inc (HPQ.N) recently released a forecast showing that its fiscal 2024 earnings will largely be in line with estimates and raised its annual dividend, reflecting stabilizing demand in the personal computers market.

Companies such as HP, Lenovo (0992.HK) and Dell Technologies (DELL.N) have seen demand ease from peaks hit during the pandemic, when work-from-home trends drove up sales of laptops and other electronic devices.

Shares of Palo Alto, California-based HP were up more than 2 per cent in trading after the bell. They have fallen roughly 2 per cent so far this year.

The PC maker also forecast fiscal 2024 free cash flow of $3.1 billion to $3.6 billion and expects to return about 100 per cent of it to shareholders through dividends and share repurchases.

“Our Future Ready plan is strengthening our core business, accelerating our expansion in services, building new operational capabilities, and improving our structural costs,” said HP CEO Enrique Lores.

The board has approved an increase to the planned dividend amount to $1.10 per share, reflecting a 5 per cent increase from the prior dividend, the company said.

The company expects its 2024 adjusted earnings in the range of $3.25 to $3.65 per share, largely in line with analyst estimates of $3.47, according to LSEG data.