The company's fiscal fourth-quarter results just barely topped expectations
Last night, HP Inc (NYSE:HPQ) announced that it would lay of between 4,000 and 6,000 employees globally over the next three years. Just three years ago, HP trimmed 9,000 employees from its payroll. This announcement was accompanied by the company's fiscal 2022 full-year and fourth-quarter earnings report, with earnings and revenue just barely topping estimates. The tech company also shared downbeat earnings guidance for its fiscal first quarter and the 2023 fiscal year.
Three brokerages have already slashed their price targets, the lowest coming from Barclays to $27. HPQ's 12-month consensus price target already stands at $29.30, which is right in line with current levels. Meanwhile, all 13 analysts in coverage consider the stock a "hold" or worse.
It looks like investors are choosing to focus on HP's restructuring efforts this morning; at last check the stock was up 2.5% at $30.11. The shares have bounced off their October 13 annual lows of $24.07, but that rally has lost steam below their 120-day moving average. Quarter-to-date, HPQ has added 18%, but it's lost 22% in 2022.