HP Inc, HP Enterprise Both Fall on Weakness in PC Sales
Shares of PC manufacturers HP Inc (HPQ:US) and Hewlett Packard Enterprise (HPE:US) traded lower on Wednesday after both companies said that the weakness in PC demand hurt their performance for the January quarter.
HPE shares fell over 6% in early Wednesday trading after the company’s FQ2 revenue and forecast for this quarter fell short of analyst estimates. HPE reported adjusted EPS of $0.52 on revenue of $6.97 billion, missing the consensus for earnings of $0.48 per share on revenue of $7.28 billion.
For this quarter, HPE said it expected revenue of $6.95 billion, below the $7.22 billion expected. The company also cut its full-year outlook, looking now for revenue growth of 4% to 6%, below the previously expected 5% to 7%.
“Our shift to a higher-margin portfolio mix led by the Intelligent Edge segment and the strong demand for our AI offering further strengthen the investment opportunity for our shareholders,” CEO Antonio Neri said.
Similarly, HPQ shares fell about 3% after the company reported results. Revenue fell nearly 22% year-over-year to $12.91 billion, below the $13.03 expected. For its third fiscal quarter, the company sees adjusted EPS of $0.86, somewhere in line with the expected $0.85.
“Our disciplined execution and strong innovation in a tough macro environment allowed us to deliver non-GAAP EPS at the high-end of our target in Q2,” CEO/President Enrique Lores said.
Congress members were mostly selling shares in these two PC makers this year. Senator Tommy Tuberville, and Congressmen Ro Khanna, and Daniel Goldman were all trading HPQ and HPE shares recently, including Khanna’s sale of HPQ stock disclosed earlier in May.
