HP lost on revenue but gained on demand.
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%.
Stay updated with the latest financial news! Register now and see what Capex has to offer!
Sources: marketwatch.com, finance.yahoo.com
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.
Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.