HP Stock Tumbles on Disappointing Q1 Forecast

HP ( HPQ ) shares tumbled in extended trading Tuesday after the company's current-quarter outlook missed analysts' projections, despite better-than-expected results for the fiscal fourth-quarter.

The personal computer and printing company saw fourth-quarter revenue grow 1.7% year-over-year to $14.1 billion, higher than the analyst consensus from Visible Alpha. Net income came in at $900 million or 93 cents per share, compared to $1 billion or 97 cents per share a year ago and above estimates.

HP’s Personal Systems division, which includes PCs, brought in revenue of $9.6 billion, up 2%, while its Printing division delivered revenue of $4.5 billion, 1% higher.

HP's Current-Quarter Outlook Misses Estimates

For the current quarter, HP forecast earnings per share (EPS) of 57 cents to 63 cents, below the analyst consensus of 72 cents. Its full-year EPS estimate of $3.06 to $3.36 topped expectations.

The company also announced a 5% increase in its quarterly dividend to about 29 cents per share.

Shares of HP fell 8% in extended trading Tuesday following the release. They were up 30% for the year through Tuesday's close.