HomeTechnologyHP Lowers Profit Outlook Amid Sluggish Sales

HP Lowers Profit Outlook Amid Sluggish Sales

Computing giant HP Inc. decided to lower its annual profit outlook on Thursday following what has been a year-long decline in the PC retail segment with a particularly stark decline in shipments to China. Shares in the company slumped by 10.7% during premarket trading on Wednesday.

HP’s desktop, notebook, and workstation shipments to China slumped by 19% over the past few months, analysis firm Canalys reported. According to Canalys, this decline largely came as the nation exhibits increased cautiousness when it comes to PC spending.

Enrique Lores, CEO of HP, revealed that the company expects its issues to persist over the near term. “While we expect another quarter of sequential growth in the fourth quarter, the external environment has not improved as quickly as anticipated and we are moderating our expectations as a result,” Lores explained, adding, “We don’t see it (a recovery in China) happening anytime soon. And at this point, we are not building that recovery in any of our plans.”

The company’s revised adjusted earnings per share forecast is in the range of $3.23 to $3.35, down from previous expectations of $3.30 to $3.50.

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