PC market recovery is weak, HP next quarter profit expected to be lower than Wall Street expectations

News from this website on November 22, HP released its latest financial forecast on Tuesday. The company believes that PC demand has not yet recovered, and profit per share in the first fiscal quarter will be between 76 and 86 cents, lower than Wall Street expectations. However, it maintained its annual profit forecast, causing the stock price to fall by more than 3% after hours.

The industry believes that companies like HP, Lenovo and Dell have gradually declined from their peak during the epidemic, only because of the work-from-home trend. sales of laptops and other electronic equipment.

The company announced that it plans to launch AI PC in the second half of next year, and its market share is expected to gradually increase

"While we do not believe that the market will immediately shift to AI PC, we believe that the increase in demand It will be gradual, with some growth in 2024 and higher penetration in 2025 and 2026," CEO Enrique Lores said on a media conference call.

Recent earnings from some of the top PC chip makers suggest that more than two years of slumping demand may be coming to an end with the holidays and the potential arrival of Microsoft's Windows 12 updates next year.

In this regard, HP maintained its forecast for adjusted profit per share in fiscal year 2024 of US$3.25~3.65 (note on this site: currently about 23~26 yuan). Its fourth-quarter revenue was $13.82 billion (currently about 99.089 billion yuan), slightly below analysts' estimates of $13.85 billion.

We still see weak demand in the consumer and business sectors in the Chinese market. "We don't expect that to change, and we've factored this into our plans," Lores said. HP's Personal Systems segment, which includes desktops and laptops, reported fewer sales than last year. 8%, while sales in the printing division fell 3%. At the same time, Lenovo also announced a decline in revenue last week, while Dell plans to release its third-quarter performance report on November 30.

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