Proactive Investors - HP Inc (NYSE:HPQ) shares dropped more than 3% in pre-market pricing on Wednesday as the company’s fiscal first-quarter guidance underwhelmed investors.
The company guided for fiscal first-quarter adjusted earnings of $0.76 to $0.86 per share, the midpoint of which is below the analyst consensus of $0.86 per share. The PC company maintained its full-year adjusted earnings projection range of $3.25 to $3.65 per share.
For the fiscal fourth quarter, HP posted revenue of $13.82 billion, down 6.5% year over year and just below Street expectations of $13.85 billion. Sales from its personal systems segment, which includes its desktop and notebook PCs, fell 8%.
Adjusted earnings were $0.90 per share, in line with expectations.
CEO Enrique Lores said the company plans to launch artificial intelligence (AI) PCs in the second half of 2024 and increase its market share over time.
"Don't think the market will immediately shift to AI PCs, we think there will be some penetration in '24 and stronger in '25," Lores said during a call with reporters.
In a later interview with CNBC, he said he expected the company's AI computers "will drive significant momentum" in the broader PC category. "We think this is going to double the growth of the PC category starting next year."
Lores explained that the new technology will be based 'locally' in the PC while drawing on wider information via the cloud, and they should only be around 5-10% more expensive than other models.
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