HP forecasts strong fourth-quarter profit on price hikes, US tariff refunds
The company lifted its annual outlook after tariff refunds added 8 cents per share and third-quarter revenue rose 12.5% to $15.7 billion.
- On Thursday, HP reported third-quarter revenue of $15.7 billion, exceeding Wall Street estimates of $14.38 billion, driven by strong demand for AI-optimized PCs.
- To offset rising memory chip expenses, the company implemented price increases on premium products and benefited from tariff refunds; adjusted profit of 83 cents per share included an 11 cents boost from those refunds.
- Analysts expect fourth-quarter adjusted EPS between 69 cents and 79 cents per share, above the 67 cents consensus estimate. The company raised its annual EPS forecast to $3.19 to $3.29.
- Despite strong revenue, shares fell after HP reported a 16 per cent drop in PC unit shipments. Printing revenue declined 2 per cent to $3.9 billion as rising commodity costs pressured margins.
- The administration of President Donald Trump refunded about $100 billion from tariffs after the Supreme Court struck down those duties, providing the legal basis for the refunds boosting HP's earnings.
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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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