Personal computer maker HP Inc. (HPQ) has reported mixed financial results for its Fiscal third quarter.
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HP posted earnings per share (EPS) of $0.75, which matched Wall Street forecasts. Revenue in the quarter totaled $13.9 billion. That was ahead of the $13.69 billion consensus expectation of analysts who track the company’s progress.
In terms of guidance, HP said that it expects Fiscal fourth-quarter earnings of $0.87 to $0.97 a share, which is in line with analyst estimates of $0.92. Management said they expect strong demand for artificial intelligence (AI) personal computers in the coming months and quarters.
HP’s earnings per share. Source: Main Street Data
Tariff Impacts
Executives at HP also commented on the impacts that tariffs are having on the business. Some U.S. technology hardware is exempt from the biggest import tariffs, which is good news for HP, although shifting trade policies continue to create an air of uncertainty.
Management at HP said they have begun to shift some manufacturing out of China and into other countries to help lessen the impact of tariffs. HP is also undertaking cost reductions and selectively raising prices to blunt the impact of tariffs. HP stock has fallen 15% this year.
Is HPQ Stock a Buy?
The stock of HP has a consensus Hold rating among 11 Wall Street analysts. That rating is based on three Buy, seven Hold, and one Sell recommendations issued in the last three months. The average HPQ price target of $28.52 implies 4.95% upside from current levels. These ratings might change after the company’s financial results.
