You’ll benefit from HP’s cost-cutting

Article Excerpt

HP INC. $29 is a hold. The maker of personal computers and printers (New York symbol HPQ; Conservative Growth Portfolio; Manufacturing sector; Shares outstanding: 942.7 billion; Market cap: $27.3 billion; Price-to-sales ratio: 0.5; Dividend yield: 4.0%; TSINetwork Rating: Average; www.hp.com) reported 2.4% higher revenue for its fiscal 2025 first quarter, ended January 31, 2025, to $13.50 billion from $13.19 billion a year earlier. Computer sales (68% of the total) rose 4.7%, while sales of printers, ink and related products (32%) fell 2.4%. Due to higher component costs, HP’s earnings before unusual items in the quarter fell 12.9%, to $704 million from $808 million a year earlier. Earnings per share declined at a slower rate of 8.6%, to $0.74 from $0.81, on fewer shares outstanding. HP continues to cut a further 3% of its workforce as it streamlines its operations. It expects the plan will cut $1.9 billion from its annual costs by the end of fiscal 2025. The company is also shifting more of its…