On Tuesday, HP Inc (NYSE: HPQ) showed a mixed picture with its fiscal third quarter report as inflation and economic uncertainty continue to weaken the demand for consumer electronics, with the PC market being in a slump for over a year now. Upon the report, shares of the Palo Alto, California-based company fell 5.6% in after-market trading as fundamental figures are not improving as quickly than HP had anticipated, causing management to trim its fiscal year outlook. Meanwhile, HP's PC rival Dell Technologies Inc (NYSE: DELL) is set to report its second quarter results on Thursday, August 31st.
Fiscal Third Quarter Highlights
HP’s total revenue dropped 9.9% YoY to $13.20 billion, which was short of Refinitiv’s consensus estimate of $13.37 billion. Revenue of its personal systems unit dropped 11%YoY to $8.9 billion. This segment that covers personal computers is HP’s biggest growth driver and is suffering with the PC market slump. Due to supply chain difficulties, printing net revenue also dropped 7% YoY.
However, efficient cost control initiatives enabled HP to demonstrate at least some sort of resilience as it delivered adjusted earnings in line with estimates. As total costs ...