HP cuts profit guidance as Q3 revenue falls short of analyst estimates
Investing.com — HP reported Tuesday fiscal third-quarter revenue that fell short of Wall Street estimates and the personal computing giant cut its annual earnings guidance amid a slower than expected rebound in PC demand.
HP Inc (NYSE:HPQ) fell 5% in after-hours trade following the report.
HP reported adjusted EPS of $0.86 on revenue of $13.2 billion. Analysts polled by Investing.com anticipated adjusted EPS of $0.86 on revenue of $13.38B.
In its personal systems unit, which includes personal computers and accounts for the majority of growth, revenue fell 11% to $8.9B in Q3 year over year.
Printing net revenue fell 7% to $4.3B, led by partly by supply-chain issues.
Looking ahead, the company forecast adjusted fourth-quarter EPS of $0.85 to $0.97, compared with Wall Street estimates for EPS of $0.95.
For 2023, adjusted EPS was guided in a range of $3.23 to $3.35, below Wall Street estimates of $3.37, and down from a prior range of $3.30 to $3.50. The company also lowered its guidance on annual free cash to $3B from a prior estimate of $3B to $3.5B.
"[T]he external environment has not improved as quickly as anticipated and we are moderating our expectations as a result," the company said.
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