Wednesday, June 12, 2024
HomeBusinessHP Inc. CEO Enrique Lores defends inventory buyback program

HP Inc. CEO Enrique Lores defends inventory buyback program

HP Inc. CEO Enrique Lores advised CNBC’s Jim Cramer on Monday that the corporate is protecting its inventory buyback program in place, contending it stays a very good use of company money even with shares up 18% over the previous 12 months.

“We proceed to imagine the worth of our shares is undervalued, and, subsequently, that purchasing HP shares is an efficient funding for traders,” Lores stated in a “Mad Money” interview after the corporate reported better-than-expected results for its fiscal 2022 first quarter, which ended Jan. 31.

Earnings per share of $1.10 beat Wall Avenue’s forecast by 8 cents, in line with Refinitiv, whereas quarterly revenues of $17.02 billion eclipsed analyst projections of $16.5 billion. As well as, the corporate returned $1.8 billion to shareholders within the quarter, with $1.5 billion by means of inventory buybacks, Lores stated.

Lores’ feedback got here in response to Cramer’s inquiry about whether or not shopping for again inventory “nonetheless is sensible all the best way up right here.” On Jan. 12, the inventory hit its all-time excessive of $39.65 per share, but it surely’s come down a bit since then throughout a interval of total market volatility.

HP Inc. shares closed Monday’s session at $34.36 apiece, placing its year-to-date declines at practically 9%.

“We have now dedicated to purchase not less than $4 billion of shares this yr,” Lores stated. “We’re going to proceed to execute our plan as a result of, once more, we predict it is a good funding,” he added.

HP Inc. shares commerce at 8.1 instances ahead earnings, in line with FactSet, which is under their five-year common of 9.4. The inventory additionally helps a 2.9% dividend yield, based mostly on Monday’s closing worth.

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