HP Is Facing Challenges In Both The Consumer And Business Segments

HP Inc. is facing challenges in its financial outlook due to a prolonged slump in the personal computers (PC) segment and sluggish demand in China, resulting in a decline of 5.2% in its shares during after-market trading. The decline in demand for consumer electronics, including PCs, due to inflation and economic uncertainty has led to increased inventory across the supply chain. While HP initially expected a faster recovery, CEO Enrique Lores acknowledged that the external environment’s improvement has been slower than anticipated, causing the company to adjust its profit expectations.

PC shipments to China, including desktops, notebooks, and workstations, have dropped by 19% recently due to cautious IT spending in the region. As a result, HP does not foresee a recovery in China shortly.

HP’s adjusted earnings per share forecast has been revised to a range of $3.23 to $3.35 from the earlier range of $3.30 to $3.50. The company’s third-quarter revenue dropped 9.9% to $13.20 billion, falling short of analysts’ estimates.

Despite the challenges, HP remains committed to cost control, reporting adjusted earnings per share of 86 cents, in line with analyst estimates. The company is on track to deliver 40% of its three-year cost savings target by the end of the fiscal year.

Additionally, HP Inc. has reduced its full-year cash flow and profit outlook, attributing this to a slower-than-expected rebound in the PC market. The company’s free cash flow for the fiscal year ending in October is projected to be $3 billion, lower than the previous estimate of $3.25 billion. HP has also adjusted its profit forecast, with expectations now ranging from $3.23 to $3.25 per share, compared to the previous range of $3.30 to $3.50 per share.

CEO Enrique Lores noted that demand has not improved as quickly as anticipated due to elevated inventory levels across the industry, resulting in suppressed computer pricing. Business customers delayed purchases in response to job cuts and cost-consciousness, and the Chinese economy’s challenges have also impacted sales.

The PC market had experienced a decline after a pandemic-driven surge, and HP had anticipated a quicker recovery in the second half of 2023, driven by back-to-school and holiday season sales. However, the reduced outlook underscores the ongoing unpredictability of the market.

HP’s fiscal third-quarter revenue dropped by 9.9% to $13.2 billion, below analysts’ average estimate of $13.4 billion. Consumer PC sales declined by 12%, while sales to businesses were down by 11%. Despite the challenges, HP gained ground on rivals this quarter. Lores emphasized that the rebound started, albeit at a slower pace.

In conclusion, HP Inc. is navigating a challenging environment marked by a prolonged PC market slump, cautious IT spending in China, and inventory-related pricing pressures. The company’s adjustments to profit and cash flow expectations reflect the uncertain landscape of consumer electronics demand and global economic conditions. While facing these hurdles, HP remains committed to managing costs and adapting to market dynamics.

HP Short (Sell)
Enter At: 16.66
T.P_1: 16.15
T.P_2: 15.74
T.P_3: 15.41
T.P_4: 15.07
S.L: 17.59


All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.

This website and all information is intended for educational purposes only and does not give financial advice. Signal Mastermind Signals is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Mastermind Signals does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Mastermind Signals is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Mastermind Signals or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use.

Signal Mastermind Signals is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.

While Signal Mastermind Signals believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Mastermind Signals does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Mastermind Signals to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Mastermind Signals assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.

All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Mastermind Signals are not responsible for your trading in any way.

The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Mastermind Signals assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a trading account or use the services, free of charge or paid, to any of the Broker companies mentioned on this website, bears full responsibility for their actions.

Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.

Forex/CFD trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before each Forex/CFD investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Mastermind Signals nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.

Translate »