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.

The post HP Lowers Profit Outlook Amid Sluggish Sales appeared first on theprimarymarket.com.

Compared to the same period in 2022, HP saw an 18.8% dip in sales across all of its divisions. This included consumer PC sales going down 36%, commercial PC sales declining 18%, and printer sales taking a 5% hit.

According to the report, HP recorded $13.8 billion in sales, coming short of Wall Street estimates of $14.15 billion. Personal Systems net revenue came at $9.2 billion, down 24% year over year and below the $9.65 billion estimated. Printing net revenue came at $4.6 billion, narrowly beating the $4.49 billion that Wall Street expected.

Speaking about the declining sales, HP CEO Enrique Lores said that they are “driven by macroeconomy.” 

“I think the decline of sales is really driven by the situation that we see in the market driven by the macroeconomy,” Lores told Yahoo Finance.

Lores expects that sales numbers will pick up in the second part of the year when the company expects increased demand for its products.

On the other hand, HP recorded $0.75 in diluted EPS, beating the expected mark of $0.74. The company predicts a similar range for Q2, saying that it expects diluted EPS to be in the range of $0.73 to $0.83.

The investors took the news about HP’s declining sales pretty well, with the company’s stock seeing positive movement in after-hours trading. HP shares climbed 2.6% after closing at $29.52 per share on Tuesday.

The post HP CEO Says the Company’s Declining Sales are “Driven by the Macroeconomy” appeared first on theprimarymarket.com.

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.

The post HP Lowers Profit Outlook Amid Sluggish Sales appeared first on theprimarymarket.com.

Compared to the same period in 2022, HP saw an 18.8% dip in sales across all of its divisions. This included consumer PC sales going down 36%, commercial PC sales declining 18%, and printer sales taking a 5% hit.

According to the report, HP recorded $13.8 billion in sales, coming short of Wall Street estimates of $14.15 billion. Personal Systems net revenue came at $9.2 billion, down 24% year over year and below the $9.65 billion estimated. Printing net revenue came at $4.6 billion, narrowly beating the $4.49 billion that Wall Street expected.

Speaking about the declining sales, HP CEO Enrique Lores said that they are “driven by macroeconomy.” 

“I think the decline of sales is really driven by the situation that we see in the market driven by the macroeconomy,” Lores told Yahoo Finance.

Lores expects that sales numbers will pick up in the second part of the year when the company expects increased demand for its products.

On the other hand, HP recorded $0.75 in diluted EPS, beating the expected mark of $0.74. The company predicts a similar range for Q2, saying that it expects diluted EPS to be in the range of $0.73 to $0.83.

The investors took the news about HP’s declining sales pretty well, with the company’s stock seeing positive movement in after-hours trading. HP shares climbed 2.6% after closing at $29.52 per share on Tuesday.

The post HP CEO Says the Company’s Declining Sales are “Driven by the Macroeconomy” appeared first on theprimarymarket.com.