HP reported second-quarter results that beat analysts’ estimates for revenue but missed on earnings and guidance, in part due to President Donald Trump’s sweeping tariffs.
HP reported net income of $406 million, or 42 cents per share, down from $607 million, or 61 cents per share, a year ago.
For its third quarter, HP said it expects to report adjusted earnings of 68 cents to 80 cents per share, missing the average analyst estimate of 90 cents, according to LSEG.
Full-year adjusted earnings will be within the range of $3 to $3.30 per share, while analysts were expecting $3.49 per share.
HP said its outlook “reflects the added cost driven by the current U.S. tariffs,” as well as the associated mitigations.
President Donald Trump’s sweeping tariffs contributed to HP’s second-quarter results, which met analysts’ revenue projections but fell short of earnings and guidance. The report caused a 15% decline in shares.
This is the company’s performance in comparison to the estimates of analysts compiled by LSEG.
Adjusted earnings per share: 71 cents versus. We anticipate 80 cents.
Revenue: $13.22 billion vs. An estimated $13–14 billion is needed.
From $12.08 billion during the same period last year, revenue for the quarter climbed 3.3%. A year ago, HP’s net income was $607 million, or 61 cents per share; this year, it was $406 million, or 42 cents per share.
HP said it anticipates reporting adjusted earnings for its third quarter of between 68 and 80 cents per share, which is less than the average analyst estimate of 90 cents, according to LSEG. In contrast to analysts’ expectations of $3.49 per share, full-year adjusted earnings will fall between $3 and $3.30 per share.
Its outlook, according to HP, “reflects the added cost driven by the current U. S. tariffs,” along with the related mitigating measures.
HP CEO Enrique Lores said in a statement, “A dynamic regulatory environment affected our results in the quarter, but we reacted swiftly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure.”.
Steve Kovach of CNBC was informed by Lores that HP has expanded its production in the United States, Vietnam, Thailand, India, and Mexico. A. The company anticipates that almost all of its products sold in North America will be manufactured outside of China by the end of June, according to Lores.
Lores stated in the interview that “we expect to fully mitigate the increased trade-related costs by Q4 through our actions.”.
HP’s quarterly investor call is scheduled for 5 p.m. m. ET. .
