HP Inc. shares slide after PC maker tempers full-year forecasts

August 31, 2023 12:18 AM AEST | By Investing

Google News:

HP Inc. shares slide after PC maker tempers full-year forecasts — Image source: Kalkine Media

Recent News

Acorn Secures $12.3 Million to Reimagine Workforce Development with AI

Blue Yonder Survey: Consumers Shift Grocery Shopping Habits Amid Mount...

Performance Review Crisis: 80% of Leaders Say Employees Must Quit to A...

Vasion Delivers Security, Simplicity and Sustainability to Print Manag...

Investing.com -- Shares in HP Inc (NYSE:HPQ) shed nearly a tenth of their value in early U.S. trading on Wednesday, marking their biggest decline since May 2021, after the personal computer maker dialed back its full-year profit estimates.

In its annual earnings released after the close of trading on Tuesday, California-based HP said it now expects adjusted earnings per share of between $3.23 to $3.35 in its current fiscal year. Its initial projections had been in the range of $3.30 to $3.50.

The tempered forecasts come as HP faces headwinds from a slowdown in spending, particularly in China. Uncertain economic conditions have convinced customers to rein in expenditures, hitting demand for electronics and causing an inventory build-up across the supply chain.

HP Chief Executive Officer Enrique Lores flagged in a statement that, while sequential growth is forecast for the fourth quarter, the external environment "has not improved as quickly as anticipated."

"[W]e are moderating our expectations as a result," Lores added.

Net revenue at HP slipped by 9.9% to $13.20 billion in the third quarter, missing Bloomberg consensus estimates of $13.38B.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.