Mixed quarter for HP

Mixed quarter for HP

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

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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 is not a reliable indicator of future results.