HP's Earnings Growth Will Grind to a Halt in 2020
Amid the drama of Xerox's now hostile bid to acquire HP (NYSE: HPQ), the latter company reported some decent fiscal fourth-quarter results. HP managed to beat analyst estimates for both revenue and earnings thanks to solid growth in its commercial PC business, with adjusted earnings per share up 11% year over year.
That double-digit earnings growth won't stick around in 2020. A tough environment for the printing business, the eventual end of the commercial PC upgrade cycle triggered by the end of support for Windows 7, and continued shortages of certain Intel processors will put pressure on HP's results. A massive share buyback program will prop up the per-share numbers, but HP's profits are set to take a dive next year.
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Source Fool.com
