HP shares tumble on concerns about the outlook
HP, formerly Hewlett-Packard, has missed revenue expectations and lowered its earnings forecast for the full year. For more than a year now, HP has been battling with a slump in the PC segment.
Inflation and an uncertain global economy triggered a decline in demand for consumer electronics. Earnings came in line with expectations at 86 cents per share helped by controlling costs measures, but revenue fell 9.9% to $13.20 billion, missing analysts' estimates of $13.37Bln, a trend the company says is expected to continue.
(Video Transcript)
HP earnings
Now, HP, all sessions on the IG platform late on Tuesday evening fell in extended hours after missing revenue expectations and lowering its earnings forecast for the full year. I think it's the right thing to do to start off on where we were as at the close last night. You can see we were pretty much at the bottom of the candle, meaning there were no buyers in this stock, down 7.73% when all was said and done.
For more than a year now, HP has been battling with a slump in the PC segment. Inflation and uncertain global economic activity triggered a decline in demand for consumer electronics.
HP forecast
Chinese demand, a key market for HP, is also sluggish. Over the past few months, PC shipments to China have dropped 19% in the past few months. All this led to a recovery in inventory across the supply chain. And HP coming in line with expectations at 86 cents a share, helped by controlling cost measures, but revenue falling 9.9% to $13.2 billion, missing estimates of $13.37 billion.
Now, HP forecast adjusted earnings per share to be in the range of between $3.23 to $3.35, and earlier expectations were $3.30 to $3.50. So, a reaction negative on the markets late last night, all sessions on the IG platform.
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