HP Falls Short of Targets for Sales -- WSJ
February 28 2019 - 3:02AM
Dow Jones News
By Maria Armental
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (February 28, 2019).
HP Inc.'s sales missed Wall Street targets in the most recent
quarter, weighed down by the weaker-than-expected sales of printing
supplies to commercial customers.
Part of the problem, company officials said, was overestimating
demand after relying on "lagging and incomplete market share
surveys." Also more commercial customers bought items online, a
shift that Chief Executive Dion Weisler said will require the
printer and personal-computer giant to expand and strengthen its
digital presence. The printing segment, which includes items like
ink and laser cartridges to 3-D printers, drives most of HP's
profit.
"We need new weapons to fight on our new battlefield," Mr.
Weisler said in a conference call with analysts. "We can't just
bring a musket to a drone fight."
Shares in HP fell 13% in after-hours trading.
Revenue from the printing segment, which includes the supplies
business, fell to $5.06 billion from $5.08 billion a year
earlier.
Meanwhile, sales in the personal-systems segment, which includes
its PC business, rose 2.3% to $9.66 billion, also missing analysts'
expectations. Total units sold fell 3% from the year earlier, as
notebook units sold declined 1% and sales of desktops fell 8%, HP
said.
Overall, HP reported a first-quarter profit of $803 million, or
51 cents a share, down 59% from the year earlier, when the Palo
Alto, Calif., company got a boost from the U.S. tax overhaul.
Excluding restructuring charges and other items, profit was in line
with analysts' estimates at 52 cents a share, up from 48 cents a
share a year earlier.
Revenue rose 1.3% to $14.71 billion, though analysts polled by
FactSet expected $14.86 billion.
This quarter, HP expects earnings of 45 cents to 48 cents a
share, or 50 cents to 53 cents a share on an adjusted basis.
Analysts expect a profit of 51 cents a share, or 53 cents a share
as adjusted.
The company affirmed its adjusted profit forecast of $2.12 to
$2.22 a share.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
February 28, 2019 02:47 ET (07:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
HP (NYSE:HPQ)
Historical Stock Chart
From Sep 2024 to Oct 2024
HP (NYSE:HPQ)
Historical Stock Chart
From Oct 2023 to Oct 2024