Even though more and more people started working from home since the pandemic, HP, one of the world's tech giants, posted earnings well below the expectations of analysts.
The net income for the last quarter was $764 million, with an EPS of 53 cents. The revenue was $12.47 billion, compared to the previous year's $14.04 billion.
Although notebook sales increased by 5%, the overall results were affected by a 23% drop in desktop sales, and 9% drop in sales of printing machines.
The company believes that once the schools reopen, and significant companies already announced that their employees could work from home indefinitely such as Twitter, Facebook, Google, the demand for monitors and laptops will increase. However, HP has some difficulties, as most of its supplies come from China and Southeast Asia.
HP is determined to save up, around $1 billion per year by the end of 2022. To do that, between 7,000 – 9,000 jobs will disappear.
The stock price dropped by 17% this year, while USA500 lost 6%.
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Sources: marketwatch.com, finance.yahoo.com