HP Inc. (HPQ.N) missed Wall Street expectations for second-quarter revenue on Tuesday as inflation-hit customers bought fewer personal computers, sending its shares down almost 3% in extended trading.
HP, Lenovo (0992. HK), and Dell Technologies (DELL.N) have seen demand drop from the pandemic-driven laptop and other electronic equipment sales.
IDC said global PC shipments dropped roughly 30% in January-March, lower than before the pandemic.
HP’s Personal Systems division, which sells desktop and notebook PCs, fell 29% in the reporting quarter, while its printing segment fell 5%.
HP expects second-half revenue to exceed first-half sales, even if the year-over-year comparison will be negative.
“From a demand perspective, especially on the consumer side, the second half is stronger,” said CEO Enrique Lores in a Reuters interview.
The PC manufacturer predicts yearly adjusted earnings between $3.30 and $3.50 per share, up from $3.20 to $3.60.
Lores said AI-driven potential was discussed at a partner event this quarter, and the business was working with key software and semiconductor partners to establish new PC architectures that would drive a PC refresh in the coming years.
California-based HP’s second-quarter revenue was $12.91 billion. Refinitiv predicted $13.07 billion. HP earned 80 cents per share adjusted, compared to the 76 cents expected.
