Latest news with #EnriqueLores
Yahoo
6 hours ago
- Business
- Yahoo
Why HP Stock Sagged by 11% This Week
The company published its fiscal second-quarter earnings. It disappointed investors with an earnings miss and lowered full-year guidance. 10 stocks we like better than HP › The combination of an earnings miss and disappointing guidance put the hurt on veteran tech stock HP (NYSE: HPQ) this week. Over the past five trading days the company's share price withered by 11%, according to data compiled by S&P Global Market Intelligence. Just after market close on Wednesday, HP published figures from its fiscal second quarter of 2025, revealing that its net revenue was $13.2 billion. That was 3% higher than in the same period of fiscal 2024. The dynamic was markedly different on the bottom line, as non-GAAP (adjusted) net income sank to $678 million ($0.71 per share) from the year-ago profit of $812 million. Analysts weren't expecting such a steep drop in profitability; on average, they were modeling adjusted net income of $0.79 per share. On the plus side, the company beat the pundit consensus of under $13.1 billion for net revenue. In the earnings release, HP quoted CEO Enrique Lores as saying that during the quarter, the company had "delivered solid revenue growth, led by strong commercial performance in personal systems and continued momentum behind our future-of-work strategy." HP is bracing for impact on tariffs, which affect its operations because many of its components are sourced abroad. It lowered its guidance for the entirety of the fiscal year, setting the forecast for adjusted per-share earnings at $3.00 to $3.30. That's down considerably from its previous estimate of $3.45 to $3.75. Free cash flow should come in at $2.6 billion to $3 billion, meanwhile. The PC market hasn't been lively for years, and given the enduring popularity of mobile devices, I don't expect this to change. That market will also be affected by the tariff war if it drags on. None of this makes me confident about HP stock. Before you buy stock in HP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and HP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends HP. The Motley Fool has a disclosure policy. Why HP Stock Sagged by 11% This Week was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
8 hours ago
- Business
- Globe and Mail
Why HP Stock Sagged by 11% This Week
The combination of an earnings miss and disappointing guidance put the hurt on veteran tech stock HP (NYSE: HPQ) this week. Over the past five trading days the company's share price withered by 11%, according to data compiled by S&P Global Market Intelligence. Revenue and profitability went in opposite directions Just after market close on Wednesday, HP published figures from its fiscal second quarter of 2025, revealing that its net revenue was $13.2 billion. That was 3% higher than in the same period of fiscal 2024. The dynamic was markedly different on the bottom line, as non-GAAP (adjusted) net income sank to $678 million ($0.71 per share) from the year-ago profit of $812 million. Analysts weren't expecting such a steep drop in profitability; on average, they were modeling adjusted net income of $0.79 per share. On the plus side, the company beat the pundit consensus of under $13.1 billion for net revenue. In the earnings release, HP quoted CEO Enrique Lores as saying that during the quarter, the company had "delivered solid revenue growth, led by strong commercial performance in personal systems and continued momentum behind our future-of-work strategy." Earnings guidance trimmed HP is bracing for impact on tariffs, which affect its operations because many of its components are sourced abroad. It lowered its guidance for the entirety of the fiscal year, setting the forecast for adjusted per-share earnings at $3.00 to $3.30. That's down considerably from its previous estimate of $3.45 to $3.75. Free cash flow should come in at $2.6 billion to $3 billion, meanwhile. The PC market hasn't been lively for years, and given the enduring popularity of mobile devices, I don't expect this to change. That market will also be affected by the tariff war if it drags on. None of this makes me confident about HP stock. Should you invest $1,000 in HP right now? Before you buy stock in HP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and HP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
a day ago
- Business
- Yahoo
Watch These HP Price Levels as Stock Tumbles After Company Cuts Outlook Due to Tariffs
HP shares fell sharply Thursday after the company missed analysts' profit expectations and issued a light outlook, citing increased costs from tariffs. Thursday's decline followed a breakdown from a rising wedge pattern in yesterday's trading session. Investors should watch important support levels on HP's chart around $25, $23 and $21, while also monitoring a key overhead area near $ (HPQ) shares plunged Thursday after the PC maker missed analysts' profit expectations and issued a light outlook, citing increased costs from tariffs. The PC maker said its guidance reflects tariff costs and actions taken to mitigate associated trade risks, adding that it had responded quickly to expand its manufacturing footprint and reduce its cost structure. CEO Enrique Lores said during the earnings call that additional tariff costs "could not be fully mitigated in the quarter," and that HP has "implemented price increases to help offset cost pressure." HP shares fell more than 8% Thursday, posting the biggest declines in the S&P 500. The stock has lost nearly a quarter of its value so far in 2025 as investors assess the cost of the company's ongoing efforts to diversify its supply chain while it navigates the Trump administration's unpredictable trade policies. Below, we take a closer look at HP's chart and use technical analysis to identify price levels worth watching out for. Since bottoming out early last month, HP shares have staged a countertrend rally, forming a rising wedge pattern in the process. In an ominous sign, the stock broke down below the pattern's lower trendline on above-average volume in Wednesday's trading session ahead of the company's quarterly report, paving the way for a continuation move lower. It's also worth pointing out that the relative strength index has recently fallen below the 50 threshold, signaling weakening price momentum. Let's identify three important support levels to watch and also locate a key overhead area worth monitoring during future upswings. The first lower level to watch sits around $25, right about where the stock closed on Thursday. This area may provide support near a brief period of consolidation within the rising wedge pattern and the prominent September 2023 trough. A move below this level could see HP shares fall to the $23 region. The price may attract support here near the low of the stock's first minor dip after bouncing from its early-April low. Selling below this level opens the door for the shares revisiting lower support at $21. Investors may seek longer-term buy-and-hold entry points in this area near last month's tariff-driven low. During future upswings in the stock, investors should monitor the $29 area. A recovery effort into this region would likely meet overhead resistance near the rising wedge pattern's peak, which also closely aligns with a temporary pause in the stock's downtrend during March. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia
Yahoo
2 days ago
- Business
- Yahoo
HP stock plunges as tariffs slam the company
HP shares fell as much as 15% after reporting tariffs-hit earnings. The company has ramped up production outside of China, including in the US. Trade tensions have dominated this earnings season. HP dived as much as 15% in extended trading on Wednesday after reporting second-quarter earnings that were hit hard by tariffs. "Due to additional tariff costs that could not be fully mitigated in the quarter, our non-GAAP operating profit fell short of expectations," HP's CEO, Enrique Lores, said on Wednesday's earnings call. Second-quarter revenue rose 3.3% to $13.22 billion, beating analyst expectations of $13.14 billion. Profit fell 17% to $700 million compared to the same period last year, missing expectations. The earnings report and guidance disappointed investors despite HP's efforts to dampen the impact from tariffs by diversifying its supply chain. "We recently increased our production coming from Vietnam, Thailand, India, Mexico, and the US," Lores said. "By the end of June, we now expect nearly all of our products sold in North America will be built outside of China." Later in after-hours trading, the company pared losses to about 8%. HP's stock has slumped 16% so far this year, in part because of earnings misses and underperformance compared to peers. Trade tensions have been a prominent theme this earnings season. Some companies including General Motors, Chipotle, and PepsiCo lowerd their forecasts for upcoming quarters. Others, such as Snap, Delta Air Lines, and American Airlines, scrapped guidance completely, citing too much uncertainty from import duties. The US imposed a 145% duty on products made in China, as part of Trump's sweeping "Liberation Day" tariffs in April. It reduced them to 30% earlier this month. On Wednesday, a federal court found that Trump does not have the authority to impose his sweeping tariff strategy. The unanimous decision by the three-judge panel came during ongoing trade negotiations between the administration and countries around the world. On Friday, Trump threatened a new tariff on the European Union, but backed down from the plan over the weekend. The US Court of International Trade's three-judge panel was unanimous in its ruling, declaring that the tariffs imposed by the Trump administration would be vacated. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
HPQ Q1 Earnings Call: Tariff Costs Pressure Margins and Guidance Cut Amid Personal Systems Growth
Personal computing and printing company HP (NYSE:HPQ) missed Wall Street's revenue expectations in Q1 CY2025 as sales rose 3.3% year on year to $13.22 billion. Its non-GAAP EPS of $0.71 per share was 11.6% below analysts' consensus estimates. Is now the time to buy HPQ? Find out in our full research report (it's free). Revenue: $13.22 billion (3.3% year-on-year growth) Adjusted EPS: $0.71 vs analyst expectations of $0.80 (11.6% miss) Management lowered its full-year Adjusted EPS guidance to $3.15 at the midpoint, a 12.5% decrease Operating Margin: 4.9%, down from 7.4% in the same quarter last year Market Capitalization: $25.64 billion HP's first quarter results reflected a mix of growth in its Personal Systems segment and ongoing operational challenges, particularly from new tariff costs. Management highlighted that commercial PC demand and the company's expansion into high-value categories were central to top-line growth. CEO Enrique Lores noted, 'We saw strong growth in personal systems, particularly in commercial and high-value categories, driving momentum in our key growth area.' However, the quarter's operating profit was negatively affected by additional tariffs that could not be fully mitigated, with management citing a roughly $0.12 per share impact on non-GAAP earnings. Lores described the external landscape as 'highly dynamic,' pointing to shifting trade policies as a primary factor behind the shortfall in profitability. Looking forward, HP's updated guidance is shaped by continued uncertainty in the global trade environment and macroeconomic conditions. Management expects the recently accelerated supply chain rebalancing and pricing actions to help restore margins by the end of the year, though they stressed that the pace of PC market recovery remains uncertain. CFO Karen Parkhill stated, 'We believe it is prudent to moderate our guidance for the second half of the year to reflect' evolving trade policy and demand trends. The company also anticipates that its ongoing Future Ready cost savings program and the growing role of AI PCs will be key contributors to performance in the coming quarters. Management attributed the quarter's top-line growth to commercial PC momentum and high-value mix shifts but emphasized that unmitigated tariffs and manufacturing adjustments weighed on margins. Commercial PC segment momentum: Personal Systems revenue growth was led by strong commercial demand, especially in North America and Asia, with notable gains in premium, workstation, and AI-enabled PCs (AIPCs). Management credited the Windows 11 refresh cycle and increased enterprise adoption for driving performance. Tariff-related cost headwinds: The introduction of new tariffs increased costs by an estimated 100 basis points on non-GAAP operating profit, mainly affecting the Personal Systems segment. Management responded by accelerating supply chain diversification, but these actions only partially offset the impact during the quarter. Manufacturing footprint diversification: HP significantly expanded production outside China, increasing output from Vietnam, Thailand, India, Mexico, and the US. By the end of June, nearly all products sold in North America are expected to be manufactured outside China, according to CEO Lores. Print division performance split: Print revenue declined as expected, with growth in Europe offset by continued weak demand in China and North America. The company emphasized gains in home printer units and the success of its 'big tank' product line, as well as growth in consumer subscriptions and industrial printing solutions. Cost control and operational agility: HP drove down non-GAAP operating expenses year-over-year through process efficiency, automation, and portfolio optimization. The company's Future Ready program is now expected to deliver at least $2 billion in annualized structural savings by year-end, supporting strategic investment despite external headwinds. Management's outlook for the next few quarters centers on mitigating tariff costs, driving AI PC adoption, and executing operational savings programs to offset macroeconomic uncertainty. Tariff mitigation and supply chain shifts: The company expects to fully offset current tariff-related costs by the end of the year through accelerated supply chain reconfiguration, targeted pricing actions, and additional cost-cutting. Management emphasized that manufacturing outside China will provide greater operational flexibility if trade policies evolve further. AI PC adoption and premium mix shift: HP anticipates that AI-enabled PCs (AIPCs) will comprise over 25% of PC shipments by year-end, boosting average selling prices and gross margins. CEO Lores stated that 'AI PCs are between 10% and 20% higher priced than regular PCs,' projecting this mix shift as a multi-year growth driver. Cost discipline and Future Ready program: The ongoing Future Ready program aims to deliver $2 billion in annualized structural savings by year-end through organizational streamlining, IT consolidation, and portfolio optimization. Management expects these savings to help maintain profitability and enable continued investment in strategic growth areas, even as industry-wide demand remains uncertain. In the coming quarters, the StockStory team will monitor (1) the pace and effectiveness of HP's supply chain transition out of China, (2) the adoption rate and pricing dynamics of AI-enabled PCs, and (3) progress toward the $2 billion annualized cost savings target under the Future Ready program. Additional factors include margin recovery in Personal Systems and Print as tariff mitigation efforts gain traction. HP currently trades at a forward P/E ratio of 7.5×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
