HP shares down 5.7% after poor PC demand in Q2
Computer maker HP has given us all another piece of evidence to support the growing fact that consumers around the world are feeling the pinch.
Revenues and earnings fell short as the group's Personal Systems division, that's desktops and laptops, plummeted 29% in the period, while the company's printing segment recorded a 5% fall.
The one bright side was that the company issued a positive outlook telling traders that it expects consumer demand to be stronger in the second half of the year.
(Video Transcript)
HP shares fall after earnings miss
HP, the former Hewlett Packard, fell in extended trade on the IG platform late last night after the company reported its fiscal second quarter (Q2) numbers after missing revenue expectations.
Let's take a look at the figures - Q2 coming in at $12.9 billion. Analysts were expecting $13.1 billion. The group's personal systems division, that's desktops and laptops, limited in the period while the company's printing segment recorded a 5% fall.
Now, HP is not the only group in this sector going through difficult times. Global PC shipments generally declined nearly 30% in the first three months of the year. We're now at levels that are lower than before the pandemic.
However, HP expects consumer demand to be stronger in the second half of this year.
Share price chart
Let's take a look at the shares in HP, trading all-sessions on the IG platform, and it was down sharply yesterday, ending down 5.79%.
Now after posting a better than forecast earnings per share (EPS) of 80 cents in fiscal Q2, HP now expects an annualised adjusted profit between $3.30 and $3.50 per share.
Meanwhile, Hewlett Packard Enterprise posted earnings of 52 cents a share, three cents higher than forecast, revenue missing expectations. That's not an all-sessions stock.
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