TGI - Why HP Triumph Group and VMware Slumped Today
Wall Street didn't have a happy Friday, as investors reacted negatively to new escalation in the trade conflict between the U.S. and China. After Chinese officials threatened new tariffs on U.S. products that China imports, President Trump urged U.S. companies to avoid incorporating China into their supply chains. These comments had an adverse impact on stock market sentiment, and broad-based indexes fell more than 2%. Yet some stocks posted even steeper declines on company-specific issues. HP (NYSE: HPQ), Triumph Group (NYSE: TGI), and VMware (NYSE: VMW) were among the worst performers. Here's why they did so poorly.
Shares of HP dropped 6% after the printer and tech specialist reported its fiscal third-quarter financial results. On its face, HP's performance didn't seem to be all that bad, with revenue inching higher by 0.1% and helping to push adjusted earnings per share upward by nearly 12%. Yet even though HP's personal systems division saw solid sales gains, the printing unit suffered a 5% slump in segment sales, led by a 10% drop in the number of consumer hardware units sold. Moreover, investors weren't pleased with CEO Dion Weisler's decision to step down effective Nov. 1, which could lead to another strategic shift in HP's efforts to mount a full recovery after a difficult period for the tech company.
Image source: HP.