HP Inc. CEO Enrique Lores said PC demand is poised for a recovery in the second half of this year, even though the outlook for the first half of 2024 looks mixed at best. .
“Commercial demand is slowing,” Lores said Wednesday on Yahoo Finance Live, but he expects growth in the PC market to return in the second half of this year.
Mr. Lores’ near-term cautious stance partly reflects continued demand challenges in the computer and printer market.
Laptop shipments fell 16% in January from the previous month, according to data from Citi analyst Christopher Daenley. This trend was worse than the 14% quarter-over-quarter decline recorded in the last three months of 2023.
HP today announced that first-quarter sales were down in both its Personal Systems and Printers segments. Total sales were $13.2 billion, lower than analysts’ expectations of $13.58 billion, and full-year earnings per share of $3.25 were also lower than expected.
Shares fell 2.5% in premarket trading Thursday.
“We think the PC recovery may slow in 2024 given lackluster demand,” Dainley said.
Lores told Yahoo Finance earlier this year that AI PCs are coming, which could boost the company’s sales. Until then, HP will continue to tightly control costs to protect profits.
As proof of this, the company was able to expand quarterly profit margins year-on-year in both segments.
Revenue summary
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Net sales: $13.2 billion (-4.4% YoY) vs. estimated $13.58 billion
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Sales of personal systems: $8.8 billion (-4.4% YoY) vs. estimated $9.2 billion
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Printer sales: $4.4 billion (-5% YoY) vs. estimated $4.39 billion
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Diluted EPS: $0.81 (+11% YoY) vs. Estimated $0.81 (Guidance: $0.76 to $0.86)
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Brian Sozzi I’m the executive editor of Yahoo Finance. Follow Sozzi on Twitter/X @BrianSozzi And even more linkedin. Have a tip about a deal, merger, activist situation, or more? Email brian.sozzi@yahoofinance.com.
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