HP Inc’s stock falls despite surpassing Wall Street expectations for third-quarter results

HP Inc’s stock falls despite surpassing Wall Street expectations for third-quarter results

Though HP Inc’s quarterly results have surpassed Wall Street expectations, its stock has fallen by more than 5% in afterhours trading. The company has reported its third quarter net income at $783 million, down 8% from a year back.

Profits have reduced 4% amounting to $11.9. HP has unveiled not a bright picture of its personal computer business, which has remained flat year over year. In printing, the company’s net revenue has fallen 14% year over year with sales of hardware unit dropping 10%. Commercial business was the hardest hit.

HP’s fourth-quarter earnings is estimated to be 34-37 cents per share and is quite below that what the Street has been estimating, which is 42 cents. As per HP, the earnings would fall between $1.59 and $1.62 a share.

The company is passing through good times, but it has mentioned that it has been putting efforts to improve its position. CEO Dion Weisler mentioned, “Although markets remain challenged, we have the innovation and executional rigor needed to continue to take profitable share and invest in the right opportunities to drive long-term success for the company”.

Main thing for HP investors is to ensure cash keeps flowing. Experts have affirmed that if Weisler is able to grab on a trick in which it he keeps the cash pouring into shareholders’ pockets, investors will also be able to not give more importance to quarterly disappointing results.

Weisler said that the markets continue to be challenging and volatile owing to which they need to make more efforts. In the third quarter as per HP, it has slashed around 1,000 jobs. Till now, HP has slashed around 2,300 jobs. The company has made it clear that it is expecting to cut around 3,000 jobs by the end of this fiscal year.


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