After the U.S. stock market closed on Tuesday, HP (HPQ.US) announced fourth-quarter results that were lower than expected in terms of revenue because the expected growth in the PC market has not yet materialized. The data shows,In the fourth quarter, the company's revenue fell 6.5% year-on-year to $13.8 billion. HP's computer sales to businesses fell 11% year-on-year to $6.21 billion, lower than expected. Diluted earnings per share were $0.97, and non-GAAP diluted earnings per share were $0.90.

By business, fourth-quarter consumer PC business revenue fell 1% to $3.19 billion. Printing segment revenue was $4.4 billion, in line with expectations.

PC makers have been hit hard over the past 18 months as demand plummeted following the pandemic. Recently, however, some analysts say that they have begun to see signs of recovery in the industry. IDC wrote in an October report that although the global economy is still sluggish, the PC market has "turned out of the trough."

HP CEO Enrique Lores said he expected improvements in the new year. The company sees business demand stabilizing and consumer spending picking up around the upcoming holidays, which "leads us to believe the PC market will grow in fiscal 2024."

Looking ahead, HP expects non-GAAP earnings per share (excluding certain items) for the first quarter of fiscal 2024, which ends in January, to be in a range of $0.76 to $0.86, compared with analysts' average estimate of $0.85. At the same time, the company reiterated its full-year profit guidance, expecting Non-GAAP earnings per share to be between $3.25 and $3.65.

Bloomberg Intelligence analyst Woo Jin Ho wrote that first-quarter guidance was weaker than expected, meaning HP will rely on strong performance in the second half of 2024 to meet full-year guidance. "While we expect HP to benefit from a rebound in the PC business, growing competitive pressure may require the Printing Division's top and bottom lines to remain resilient."

Finally, Lores added that he expects consumers and businesses to choose high-end computers in 2024, driving up average selling prices. "More and more computers are being used as communications tools - you need better cameras, more memory, better speakers," he said.

Since the beginning of this year, HP's stock price has risen by 3.7%. After the financial report was released, the stock fell by more than 3% as of press time.