HP misses first-quarter revenue estimates on sluggish demand in PC market

HP Inc missed Wall Street estimates for first-quarter revenue on Wednesday, marking a seventh straight quarter of decline, driven by sluggish demand in the personal computers (PC) market as customers delay system upgrades.

Shares of the company were down 6.3% in extended trading.

Enterprise customers are keeping a tight leash on their budgets and spending cautiously in the wake of an uncertain economy, hitting demand for companies such as HP Inc which provide personal computing devices.

Revenue growth started to slow in 2022 as the work-from-home demand boom for PCs and electronics faded.

China continues to be a weak market for both consumer and commercial, but the overall market also remains volatile and inconsistent across regions, CEO Enrique Lores said in a media call.

The PC maker said November-to-January revenue fell about 4.4% to $13.19 billion, compared with analysts’ average estimates of $13.56 billion, according to LSEG data.

Its profit per share, however, came in at 62 cents, up from 47 cents, a year earlier.

HP forecast second-quarter adjusted profit per share between 76 cents and 86 cents, the midpoint of which is in line with estimates of 81 cents.

Sales at HP’s Personal Systems segment — home to its desktop and notebook PCs — fell 4% from a year ago, while its Printing segment posted a 5% fall. Reuters