Shares of Hewlett-Packard (HPQ) fell more than 5% after the computer manufacturer reported
quarterly earnings that missed Wall Street expectations and lowered its annual profit forecast.
The Palo Alto, California-based company said its latest earnings were negatively impacted by
weak consumer demand for personal computers and printers.
HP’s fiscal third-quarter revenue declined 4.1% to $14.7 billion U.S. That fell short of analysts’
forecasts for revenue of $15.6 billion U.S. Consumer sales in the company’s computer division
fell 20%, led by a decline in sales of notebook computers.
HP also reduced its annual profit outlook to $4.02 U.S. to $4.12 U.S. per share, down from a
previous forecast of $4.24 U.S. to $4.38 U.S. per share. Analysts, on average, had estimated
full year profits at $4.30 U.S. a share, according to Refinitiv data.
Revenue generated by HP’s Personal Systems division, which includes personal computers,
declined 3% to $10.1 billion U.S. in the quarter ended July 31. Total PC shipments fell 25%, with
notebook computer sales down 32%.
The company said that demand for personal computers, which boomed during the COVID-19
pandemic, has dropped off as schools have reopened for in-person learning.
Revenue from printer sales declined 6% to $4.6 billion U.S. in the quarter, missing analyst
estimates of $4.8 billion U.S. in sales.
Earlier this week, HP finalized its $3.3 billion U.S. acquisition of Poly, the company formerly
known as Plantronics, that sells phone headsets and other audio and video equipment.
Hewlett-Packard’s stock is down 18% this year at $31.10 U.S. per share.
