HP misses quarterly revenue estimates as inflation saps PC demand

(Reuters) – HP Inc (NYSE:) on Tuesday missed Wall Street targets for second-quarter revenue, hurt by a slowdown in the personal computer market as inflation-hit customers tightened their budgets.

Companies such as HP, Lenovo and Dell Technologies (NYSE:) Inc have seen demand ease from peaks hit during the pandemic, when work-from-home trends had driven up sales of laptops and other electronic devices.

Global PC shipments declined nearly 30% in the January-March period to levels lower than before the pandemic, according to data from research firm IDC.

Sales for HP’s Personal Systems segment – home to its desktop and notebook PCs – dropped 29% in the reported quarter, while the company’s printing segment recorded a 5% fall.

HP said it expects second-half revenue to be higher than the first half, even though the year-on-year comparison will still be negative.

“From a demand perspective, especially on the consumer side, the second half is stronger,” said CEO Enrique Lores in an interview with Reuters.

The PC maker now expects annual adjusted profit between $3.30 per share and $3.50 per share, compared with $3.20 to $3.60 forecast earlier.

California-based HP’s second-quarter revenue was $12.91 billion. Analysts were expecting $13.07 billion, according to Refinitiv data.

Net income for the quarter ended April 30 rose to $1.1 billion, or $1.07 per share, compared with $1.0 billion, or 94 cents per share, a year ago.