HP Inc missed Wall Street targets for its second-quarter revenue on Tuesday as inflation-hit customers spent less on the company's personal computers, sending its shares down nearly 3% in extended trading.
Companies such as HP, Lenovo and Dell Technologies have seen
demand ease from peaks hit during the pandemic, when work-from-home trends had
driven up sales of laptops and other electronic devices.
Global PC shipments declined nearly 30% in the January-March
period to levels lower than before the pandemic, according to data from
research firm IDC.
Sales for HP's Personal Systems segment - home to its
desktop and notebook PCs - dropped 29% in the reported quarter, while the
company's printing segment recorded a 5% fall.
HP said it expects second-half revenue to be higher than the
first half, even though the year-on-year comparison will still be negative.
"From a demand perspective, especially on the consumer
side, the second half is stronger," said chief executive Enrique Lores.
The PC maker now expects annual adjusted profit between
$3.30 per share and $3.50 per share, compared with $3.20 to $3.60 forecast
earlier.
Lores said that at a partner event this quarter, AI-driven
opportunities were talked about, and added the company was working with key
software and silicon partners to create new PC architectures that would drive a
PC refresh in the coming years.
California-based HP's second-quarter revenue was $12.91
billion. Analysts were expecting $13.07 billion, according to Refinitiv data.
On an adjusted basis, HP earned 80 cents per share, compared with expectations
of 76 cents.
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