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Following A Sales Miss, Shares Of HP Decline By 8%

After the printer and PC maker revealed fiscal third-quarter earnings that disappointed Wall Street, HP shares dropped more than 8% on Wednesday morning.

According to Refinitiv, HP reported revenue of $13.2 billion, which was lower than the $13.37 billion analysts had predicted. At 86 cents, adjusted profits per share met estimates. Additionally, the corporation provided inadequate guidance, noting the fact that PC prices have not increased as much as it had hoped.

Bernstein analysts called HP’s quarter “disappointing,” but predicted that PC sales would likely increase moving forward. The company’s printing division, according to the experts, may present more of a challenge.

The analysts expressed concern about the structural health of the printing industry and its capacity for long-term expansion in a report published on Wednesday. “Weak printer sales may have a medium-term negative influence on supplies growth,” the analysts wrote. “HPQ’s margins remain above pre-pandemic levels.”

In a similar vein, Credit Suisse analysts stated that HP’s print business continues to be their main concern, particularly in light of discussions about “long term deterioration” and a potential need for “more aggressive pricing.” The analysts reduced their forecasts for the company’s fiscal fourth quarter and fiscal full year in a report on Wednesday.

Source (CNBC)

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