HP fell short of Wall Street projections for second-quarter sales as inflation-affected consumers spent less on the company’s personal computers, causing its shares to fall about 3% during extended trading. Following the announcement, the stock dropped another 4%.
HP’s Personal Systems sector, which comprises desktop and notebook PCs, had a 29% drop in sales during the reporting quarter. Furthermore, revenue in the company’s printing business fell by 5%.
In terms of financial projections, HP now expects an annual adjusted profit of $3.30 to $3.50 per share. This revised expectation represents a decrease from the previous projection of $3.20 to $3.60 per share.
According to Refinitiv statistics, HP produced $12.91 billion in sales during the quarter, falling short of analysts’ forecasts of $13.07 billion. On an adjusted basis, however, HP earned 80 cents per share, above the projected 76 cents per share.
Despite these obstacles, HP is upbeat about the second part of the year. According to CEO Enrique Lores, demand, particularly from consumers, is projected to increase in the coming months. He also stated that HP is actively working with key software and semiconductor partners to build novel PC designs that will drive a future PC refresh.
The sources for this piece include an article in Reuters.