By Juby Babu
(Reuters) -HP forecast fourth-quarter profit below Wall Street estimates and cut its expectations for the year on Wednesday, owing to choppy demand in the personal computers market and competitive pricing, even though revenue grew after more than eight quarters.
Shares of the PC maker fell 3.7% in extended trading.
The company expects commercial PC momentum to continue, while seeing a slower recovery in the print market, CEO Enrique Lores said during a post earnings call, adding that “competitive environment continues to be difficult,” specially in print and in office.
The company expects lower than usual seasonal growth for its personal systems segment, home to its desktop and notebook PCs, according to CFO Karen Parkhill.
The company’s revenue growth had contracted in 2022 following the end of the pandemic-driven boom in demand for PCs and other electronic products.
Weak demand in China, the largest consumer of desktop PCs, has continued to hold the market back, according to research firm IDC.
Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!
By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.
However, worldwide PC shipments, excluding China, grew more than 5% year-over-year in the quarter ended June.
HP tightened its fiscal year 2024 adjusted profit forecast to be in the range of $3.35 to $3.45 per share, compared with its prior outlook of between $3.30 to $3.60 per share.
Analysts on average expect annual adjusted profit per share of $3.45, as per LSEG data.
The PC maker expects fourth-quarter adjusted profit per share to be between 89 cents and 99 cents, the midpoint of which was below LSEG estimates of 95 cents.
For the third-quarter, HP posted a 2.4% increase in revenue to $13.52 billion, compared with analysts’ average estimate of $13.38 billion, according to LSEG data.
The Palo Alto, California-based company also increased its share repurchase authorization to $10 billion.
(Reporting by Juby Babu in Mexico City; Editing by Tasim Zahid)
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.
