The stock of HP Inc. (HPQ) is down 3% after the company announced that it is suspending its forward guidance and warned that sales of its personal computers are declining.
The Silicon Valley-based company said that it won’t issue fiscal-year guidance, citing an industry-wide slump in computer sales that it expects to last through the end of 2027.
The company said in a securities filing that it won’t issue guidance for the next fiscal year as personal computer sales continue to decline worldwide.
On its last earnings call with media and analysts, HP’s management team said that industry-wide computer sales are likely to decline by a mid-single-digit percentage in calendar year 2027.
The company has said that a global memory-chip shortage and soaring costs have forced it to sell fewer computers at higher prices.
Management at HP have also said that steadily rising input costs are exerting pressure on its operating margins.
The company has promised to update investors on its cost-cutting efforts in its fiscal fourth-quarter earnings report that is scheduled to be released on Nov. 24 of this year.
However, HP is warning that its sales continue to deteriorate and that it has become too difficult to provide forward guidance to the analyst community.
HPQ stock has risen 22% over the past 12 months to trade at $34.40 U.S. per share.
Tech Insider
