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Don't Overlook HP (HPQ) International Revenue Trends While Assessing the Stock

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Have you evaluated the performance of HP's (HPQ - Free Report) international operations during the quarter that concluded in April 2025? Considering the extensive worldwide presence of this personal computer and printer maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

While delving into HPQ's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The company's total revenue for the quarter amounted to $13.22 billion, marking an increase of 3.3% from the year-ago quarter. We will next turn our attention to dissecting HPQ's international revenue to get a clearer picture of how significant its operations are outside its main base.

A Dive into HPQ's International Revenue Trends

Europe, Middle East and Africa generated $4.36 billion in revenues for the company in the last quarter, constituting 33.00% of the total. This represented a surprise of -7.56% compared to the $4.72 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East and Africa accounted for $4.75 billion (35.20%), and in the year-ago quarter, it contributed $4.37 billion (34.16%) to the total revenue.

Asia-Pacific and Japan accounted for 23.00% of the company's total revenue during the quarter, translating to $3.04 billion. Revenues from this region represented a surprise of -5.2%, with Wall Street analysts collectively expecting $3.21 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific and Japan contributed $3.23 billion (23.93%) and $2.84 billion (22.16%) to the total revenue, respectively.

Prospective Revenues in International Markets

The current fiscal quarter's total revenue for HP, as projected by Wall Street analysts, is expected to reach $13.69 billion, reflecting an increase of 1.3% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe, Middle East and Africa is anticipated to contribute 36.2% or $4.95 billion and Asia-Pacific and Japan 24.6% or $3.36 billion.

Analysts expect the company to report a total annual revenue of $54.97 billion for the full year, marking an increase of 2.6% compared to last year. The expected revenue contributions from Europe, Middle East and Africa and Asia-Pacific and Japan are projected to be 35.5% ($19.51 billion) and 24.1% ($13.26 billion) of the total revenue, in that order.

Closing Remarks

HP's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

HP currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Reviewing HP's Recent Stock Price Trends

Over the preceding four weeks, the stock's value has diminished by 4.1%, against an upturn of 6.1% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts HP among its entities, has appreciated by 10.3%. Over the past three months, the company's shares have seen a decline of 18.5% versus the S&P 500's 0.5% decline. The sector overall has witnessed an increase of 1.4% over the same period.

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