HP Inc.’s stock initially skidded more than 6% in extended trading Tuesday after the computing giant reported mixed results and offered a cautious outlook. “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,” HP Chief Executive Enrique Lores said in an interview.
For the fourth quarter, HP is guiding for adjusted earnings of 85 cents to 97 cents a share, while analysts polled by FactSet are forecasting 95 cents a share. Lores warned that PC pricing has not “recovered as quickly” as expected in what he called a challenging economy, but he said that the availability of AI products in late 2024 should “refresh” consumer and business sales. HP
HPQ,
+0.13%
reported fiscal third-quarter net earnings of $766 million, or 76 cents a share, compared with net earnings of $1.12 billion, or $1.08 a share, in the year-ago quarter. Adjusted earnings were 86 cents a share. Revenue declined 10% to $13.2 billion, compared with $14.65 billion a year ago. It was the third straight quarter HP missed analysts’ revenue estimates. Analysts surveyed by FactSet had expected on average net earnings of 86 cents a share on revenue of $13.4 billion. Shares of HP have gone up 17% this year, while the S&P 500 index
SPX
has gained 17%. “HP results provided a look into the bifurcation between AI and everything else in tech,” analyst Daniel Newman, CEO of the Futurum Group, sai …
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For the fourth quarter, HP is guiding for adjusted earnings of 85 cents to 97 cents a share, while analysts polled by FactSet are forecasting 95 cents a share. Lores warned that PC pricing has not “recovered as quickly” as expected in what he called a challenging economy, but he said that the availability of AI products in late 2024 should “refresh” consumer and business sales. HP
HPQ,
+0.13%
reported fiscal third-quarter net earnings of $766 million, or 76 cents a share, compared with net earnings of $1.12 billion, or $1.08 a share, in the year-ago quarter. Adjusted earnings were 86 cents a share. Revenue declined 10% to $13.2 billion, compared with $14.65 billion a year ago. It was the third straight quarter HP missed analysts’ revenue estimates. Analysts surveyed by FactSet had expected on average net earnings of 86 cents a share on revenue of $13.4 billion. Shares of HP have gone up 17% this year, while the S&P 500 index
SPX
has gained 17%. “HP results provided a look into the bifurcation between AI and everything else in tech,” analyst Daniel Newman, CEO of the Futurum Group, sai …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]