HP’s quarterly revenue misses expectations, PC sales continue to decline
HP’s third-quarter revenue fell 4.1% year-on-year to $14.7 billion, compared with an average analyst estimate of $15.6 billion. The computer division’s sales from consumers fell 20% year-on-year, mainly due to weaker demand for notebooks. HP lowered its annual profit forecast, excluding some items, to $4.02-$4.12 per share from $4.24-$4.38 previously, compared with an average analyst estimate of $4.30.
Hewlett-Packard CEO Enrique Lores (Enrique Lores) said: “Like other companies, we were also affected by weak consumer demand, and this impact will continue in the fourth quarter. This situation is likely to continue for multiple quarters. “
Revenue from HP’s Personal Systems (including PCs) segment fell 3 percent to $10.1 billion in the fiscal third quarter ended July 31, 2022. While revenue from the Consumer segment declined year-over-year, revenue from the Commercial Products segment increased 7%. Total shipments in the fiscal third quarter fell 25% year-on-year, and notebook shipments dropped 32%.
The rise in HP’s business PCs across the business in recent months has partially offset the decline on the consumer side, but Lloris warned that demand for commercial products is also showing signs of softening.
PC sales surged in the early days of the outbreak, but began to decline after schools reopened and the economy worsened. Global PC shipments fell 13% year-on-year from April to June, the worst quarter in more than 9 years; HP’s shipments fell more than 27%, worse than other companies; in the third quarter, HP came from the printing division Revenue fell 6% year over year to $4.6 billion, missing analysts’ expectations of $4.8 billion.
The company has focused on cutting costs in recent years, Lloris said.
Shares of Hewlett-Packard closed at $31.10 on Tuesday, down 5 percent in after-hours trading. The company’s shares have fallen 17 percent this year.
Earlier this week, HP completed its acquisition of Poly in a deal worth $3.3 billion. Poly, formerly known as Plantronics, sellscell phoneHeadphones and other audio and video accessories. Hewlett-Packard bought Poly mainly because of the strong demand for remote office equipment.