HP Inc. Stock Falls. Why Short-Term Pain Could Mean Long-Term Gains.
Shares of HP Inc., the maker of personal computers and printers, are falling as the company cuts its earnings outlook, but this short-term pain could lead to long-term gains.
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Posted 8/30/2023, 11:36:00 AM
barrons.com
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HP Inc has lowered its annual profit expectations due to a prolonged slump in the personal computers segment and sluggish demand in China.
HP Inc. has reported disappointing earnings due to weak demand for printers and lower-than-expected prices for personal computers, leading to a drop in their stock.
HP Enterprise reported strong earnings, fueled by growth in the networking business and high demand for high-performance computing and generative artificial intelligence hardware and services.
HP's stock dropped 5.6% after posting lower-than-expected revenue for the fiscal third quarter, while PVH's stock climbed 2.6% on strong financial results and an improved outlook.
HP Inc.'s stock dropped 10.7% in after-hours trading following mixed financial results and a cautious outlook, with CEO Enrique Lores noting that the external environment has not improved as expected and PC pricing has been a challenge, but the availability of AI products in late 2024 is expected to boost sales.
Shares of HP dropped 7% after the company reported a fiscal third-quarter revenue miss, with quarterly revenue of $13.20 billion falling short of estimates.
PC-making giant HP Inc. experienced a plunge in shares as tepid demand for computers led to a full-year profit warning, highlighting the ongoing challenges of the PC market.
Berkshire Hathaway has sold 5.5 million shares of HP, potentially indicating more stock sales to come.