© Reuters. HP reports in-line Q4 results, plans to cut 4,000-6,000 employees by 2025, raises dividend
By Davit Kirakosyan
HP Inc. (NYSE:) reported its , with in-line EPS of $0.85 and revenue of $14.8 (down 11.2% year-over-year) billion, compared to the consensus estimate of $14.84B.
The company expects Q1/23 EPS to be in the range of $0.70-$0.80, worse than the consensus estimate of $0.86. For the full year, the company expects EPS in the range of $3.20-$3.60, compared to the consensus estimate of $3.61.
The company announced the fiscal year 2023 Future Ready Transformation plan, driving significant structural cost savings through digital transformation, portfolio optimization and operational efficiency. Management expects these actions to result in annualized gross run rate savings of at least $1.4B by the end of fiscal 2025. The company estimates that it will incur approximately $1.0B in labor and non-labor costs related to restructuring and other charges, with approximately $0.6B in fiscal 2023, and the rest split approximately equally between fiscal 2024 and 2025. The company expects to reduce gross global headcount by about 4,000 to 6,000 by the end of fiscal 2025.
“Looking forward, the new Future Ready strategy we introduced this quarter will enable us to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future,” said Enrique Lores, HP President and CEO.
Furthermore, the company raised its quarterly dividend by 5% to $0.2625 per share (or $1.05 annualized), which is payable on January 4, 2023, to stockholders of record on December 14, 2022.