Latest news with #tariffimpact
South China Morning Post
a day ago
- Business
- South China Morning Post
Trade worries drag down Singapore's home sales to 5-month low
Singapore 's new private home sales fell to a five-month low in May, as global tariff tensions weighed on demand in the trade-dependent city state. Developer sales dropped for a third consecutive month, with just 311 units bought last month, according to data released by the Urban Redevelopment Authority on Monday. The outlook for the Southeast Asian financial hub has dimmed, following US President Donald Trump 's push for tariffs and the city state's economy contracting in the first quarter. Developers have grown more cautious, launching no major projects for sale in May – a pause that further weighed on sales figures. People gather along the boardwalk in front of the skyline at Marina Bay in Singapore. Photo: AFP A first-quarter survey of senior real-estate executives found that nearly 90 per cent viewed a global economic slowdown as a risk. Their next biggest concerns were job losses and a weakening domestic economy. Singapore faces heightened risks of a recession due to export hits brought on by tariffs, Bloomberg Economics analyst Tamara Henderson said in a report earlier this month. Authorities have adopted a more cautious approach, offering land that could yield 4,725 private housing units in the second half of the year – a 6 per cent drop from the first half. Instead, they expanded the so-called reserve list, where land parcels are only triggered for tender if there is sufficient demand from developers.
Yahoo
29-05-2025
- Business
- Yahoo
HP Inc (HPQ) Q2 2025 Earnings Call Highlights: Navigating Growth Amid Tariff Challenges
Revenue Growth: 5% increase in constant currency year-over-year. Personal Systems Revenue: Grew 8% in constant currency, driven by strong commercial performance. PC Commercial Revenue: Increased 9% year-over-year. Print Revenue: Declined 3% in constant currency. Operating Margin: 7.3%, impacted by approximately 100 basis points due to tariff-related costs. Non-GAAP Earnings Per Share: $0.71, impacted by $0.12 due to tariff-related costs. Gross Margin: 20.7%, down year-over-year due to increased tariff and commodity costs. Free Cash Flow: Slightly negative due to timing of payments for inventory actions. Shareholder Returns: Approximately $400 million returned through dividends and share repurchases. FY25 Non-GAAP EPS Guidance: $3 to $3.30. FY25 GAAP EPS Guidance: $2.32 to $2.62. Q3 Non-GAAP EPS Guidance: $0.68 to $0.80. Q3 GAAP EPS Guidance: $0.57 to $0.69. FY25 Free Cash Flow Guidance: $2.6 billion to $3 billion. Warning! GuruFocus has detected 4 Warning Sign with HPQ. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. HP Inc (NYSE:HPQ) delivered revenue growth for the fourth consecutive quarter, with a 5% increase in constant currency year-over-year. The Personal Systems segment saw an 8% revenue growth in constant currency, driven by strong commercial performance and demand for AI PCs. HP Inc (NYSE:HPQ) is accelerating its manufacturing footprint diversification, with plans to have nearly all products sold in North America built outside of China by June. The company introduced over 80 new products and services at the global AMPLIFY conference, receiving positive feedback from partners and customers. HP Inc (NYSE:HPQ) is on track to achieve at least $2 billion in gross annual run rate structural savings by the end of fiscal year 2025, exceeding previous goals. HP Inc (NYSE:HPQ)'s non-GAAP operating profit fell short of expectations due to additional tariff costs that could not be fully mitigated in the quarter. Print segment revenue declined 3% in constant currency, impacted by a slowdown in North America and weak demand in China. The company faced a net impact of approximately 100 basis points on non-GAAP operating profit due to tariff-related issues. HP Inc (NYSE:HPQ) moderated its guidance for the second half of the year due to macroeconomic uncertainties and potential impacts from trade policies. Free cash flow guidance was revised downwards, reflecting the impact of tariff-related costs and lower-than-expected working capital improvements. Q: Can you provide more context on your expectations for the PC market in the second half of the year? What factors are influencing your guidance? A: Enrique Lores, HP Inc's President and CEO, explained that while there was strong demand in the first half, they are being more prudent for the second half due to changes in economic conditions and announced price increases across the industry. They expect these factors to impact demand but aim to grow market share. Windows 11 remains a catalyst, and any stronger-than-expected demand will be reflected in their results. Q: How are your growth businesses performing, and what is their impact on overall revenue? A: Enrique Lores noted that while they haven't disclosed the overall size, growth businesses are expanding faster than core businesses and have higher gross margins. AI PCs, Workforce Solutions, and industrial print are key areas driving growth. AI PCs are on track to represent more than 25% of the PC business by year-end. Q: Are you expecting Personal Systems margins to be within the 5% to 7% range for the full year? A: Karen Parkhill, HP Inc's CFO, confirmed that they expect margins to be within the 5% to 7% range for the full year, likely in the lower half due to the impact in Q2, but with sequential improvement. Q: What are the key applications driving the shift towards AI PCs, and how does this impact pricing and growth expectations? A: Enrique Lores highlighted that AI PCs are seeing solid growth, with applications from over 100 software companies utilizing AI capabilities. AI PCs are expected to represent more than 35% of the PC mix by year-end, with prices 10% to 20% higher than regular PCs, impacting overall value. Q: How are you mitigating the impact of tariffs, and what are the expected outcomes? A: Enrique Lores detailed actions such as accelerating the shift of manufacturing out of China, changing logistics networks, and implementing targeted price increases. Karen Parkhill added that they expect to fully mitigate tariff costs by Q4 through these measures and additional cost savings. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
