The Los Angeles Post
U.S. World Business Lifestyle
Today: March 18, 2025
Today: March 18, 2025

HP forecasts Q1 profit below estimates on sluggish demand in PC market

FILE PHOTO: A screen displays the logo for HP Inc. at the NYSE in New York
November 26, 2024
Priyanka G - Reuters

By Priyanka G

(Reuters) -HP forecast its first-quarter profit below Wall Street expectations on Tuesday, signaling persistent choppy demand in the personal computers market and sending the company's shares down 8% in extended trading.

Traditional PC makers have been grappling with soft demand following a boom during the pandemic. AI-powered PCs are also yet to grab the attention of the mass market even as their demand increased in the corporate and educational sectors, thanks to businesses and institutions looking to upgrade their devices.

AI PCs have not boosted the overall PC demand as "buyers have yet to see their clear benefits", Gartner analyst Mikako Kitagawa said.

Global shipments of traditional PCs dipped 2.4% to 68.8 million in the third quarter, according to research firm IDC.

"You are going to see us expanding our AI portfolio in PCs. We are also going to introduce a new AI capability in Print (printing segment) ... we will be introducing a new family of video conferencing systems," HP CEO Enrique Lores told Reuters.

Traditional PC weakness and stiff competition also led to a third-quarter revenue miss for rival Dell.

HP expects its first-quarter adjusted profit per share to be between 70 cents and 76 cents, below analysts' estimate of 85 cents, data compiled by LSEG showed.

"We have stock-compensation expense that's higher in Q1 and it gets better in subsequent quarters," said Chief Financial Officer Karen Parkhill.

"We are taking pricing and cost actions to offset some of the margin headwinds in personal systems and that's going to have a more significant impact in the back half."

The company's revenue increased 1.7% to $14.1 billion for the fourth quarter, compared with the estimates of $13.99 billion.

Its adjusted profit of 93 cents per share met expectations.

For fiscal 2025, HP forecast its adjusted profit between $3.45 and $3.75 per share, with the midpoint in line with estimates.

(Reporting by Priyanka.G and Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar)

Share This

Popular

Business|Science|Technology

History-making Blue Ghost lunar lander sends one last message from the moon

History-making Blue Ghost lunar lander sends one last message from the moon
Business|Economy|Europe|Political|US

UK business minister Reynolds to visit Washington for trade talks

UK business minister Reynolds to visit Washington for trade talks
Business|Finance|Political|Technology|US

Canary Capital continues flurry of US crypto ETF filings with Sui proposal

Canary Capital continues flurry of US crypto ETF filings with Sui proposal
Americas|Business|Economy|Technology

Glencore approached battery recycler Li-Cycle for potential deal

Glencore approached battery recycler Li-Cycle for potential deal

Technology

Business|Economy|Finance|Technology|US

Alphabet back in talks to buy Israel's Wiz for over $30 billion, source says

Alphabet back in talks to buy Israel's Wiz for over $30 billion, source says
Business|Finance|Stock Markets|Technology|US

Story on Google expanding Reddit partnership withdrawn

Story on Google expanding Reddit partnership withdrawn
Crime|Political|Technology|US

US House committee seeks record on Chinese telecom hacking

US House committee seeks record on Chinese telecom hacking
Business|Environment|Technology|US

US releases $57 million in financing to help reopen Michigan reactor

US releases $57 million in financing to help reopen Michigan reactor

Access this article for free.

Already have an account? Sign In