HP forecasts strong fourth-quarter profit on price hikes, US tariff refunds
HP said tariff refunds will add 8 cents to fourth-quarter earnings and lifted its annual EPS forecast to $3.19 to $3.29.
- On Thursday, the laptop maker reported third-quarter revenue of $15.7 billion, exceeding estimates, driven by strong demand for AI-optimized PCs. The company forecast fourth-quarter adjusted earnings per share between 69 cents and 79 cents, above analysts' expectations.
- The President Donald Trump administration refunded about $100 billion in collected tariffs following a Supreme Court ruling, offsetting memory chip expenses. The company raised prices on premium and AI-powered personal computers to further cushion rising costs.
- Adjusted profit reached 83 cents per share for the quarter ended July 31, including an 11-cent boost from tariff refunds. While PC unit revenue rose 18 per cent, unit shipments dropped 16 per cent as the company focused on higher-margin products.
- Shares fell 10 per cent in extended trading as shipment declines overshadowed strong revenue results. CFO Karen Parkhill noted that rising commodity costs may pressure Personal Systems segment margins in the fourth quarter.
- The company raised its annual forecast for adjusted earnings per share to $3.19 to $3.29, including a 19-cent favorable impact from estimated tariff refunds. CEO Bruce Broussard credited innovations in WXP and AI-optimized PCs for attracting new customers amid the memory chip shortage.
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HP forecasts strong fourth-quarter profit on price hikes, US tariff refunds
Aug 26 (Reuters) - HP forecast current-quarter profit above Wall Street estimates on Wednesday, a sign that estimated tariff refunds along with price increases on premium and AI-powered personal computers will offset memory chip expenses. The company...
HP benefits from the AI boom and exceeds analysts' expectations with its sales. Why the share still collapsed.
[Digital Daily Reporter Kim Moon-ki] HP announced on the 27th that despite reporting strong results for the third quarter of its fiscal year (May–July), its stock price plummeted by approximately 10% in after-hours trading due to the impact of rising unit prices caused by soaring memory semiconductor prices and the resulting sharp decline in PC shipments. HP’s total revenue for the third quarter reached $15.7 billion (approximately 21.666 trill…
HP beats on earnings and revenue but PC unit slump sinks the stock
Shares in HP Inc. fell more than 9% in late trading today after a third quarter in which the company shipped far fewer personal computers than a year earlier, even though revenue and earnings landed ahead of analyst expectations. For the quarter that ended on July 31, HP reported adjusted earnings of 83 cents per […] The post HP beats on earnings and revenue but PC unit slump sinks the stock appeared first on SiliconANGLE.
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