HP Stock Tumbles on Disappointing Q1 Forecast | Global News Avenue

HP (HPQWhile its fiscal fourth-quarter results were better than expected, the company’s current-quarter outlook fell short of analysts’ expectations, sending its shares tumbling in after-hours trading on Tuesday.

The PC and printing company’s fourth-quarter revenue rose 1.7% year over year to $14.1 billion, beating analysts’ expectations from Visible Alpha. Net income was $900 million, or 93 cents a share, compared with $1 billion, or 97 cents a share, a year ago, above expectations.

HP’s Personal Systems division, which includes PCs, had revenue of $9.6 billion, up 2 percent, while its printing unit’s revenue was $4.5 billion, up 1 percent.

HP’s current quarter outlook falls short of expectations

For the current quarter, HP forecasts Earnings per share (EPS) 57 cents to 63 cents, below analysts’ average estimate of 72 cents. Its full-year earnings per share forecast was $3.06 to $3.36, beating expectations.

The company also announced a 5% increase in quarterly results dividend to about 29 cents per share.

HP shares fell 8% in extended trading on Tuesday following the news. As of Tuesday’s close, shares were up 30% for the year.