HP Slides Again as PC Unit Sales Plunge 16% Amid Memory Chip Crunch
HPQ sits 64% above its 52-week low of $17.56.
Summary
HP shares fell another 5.6% in regular trading Thursday to $28.79, extending the post-earnings rout that began with a 10% after-hours drop Wednesday. The decline comes despite a solid Q3 beat—EPS of $0.83 vs. $0.66 expected and revenue of $15.7B vs. $14.4B—because unit sales of personal systems tumbled 16% overall and 19% for consumer, a sharp acceleration from Q2's 7% and 8% declines. The memory chip shortage, dubbed RAMageddon, is squeezing margins and dampening PC demand, which accounts for about 70% of HP's sales. The company raised full-year EPS guidance to $3.19–$3.29, but analysts see worsening declines in FY27 as memory costs keep rising. This follows the Q3 earnings release and guidance update from Wednesday, with today's action confirming the market's negative read on the unit-sales deterioration.
At the time of this announcement, HPQ was trading at $28.72 on NYSE in the Technology sector, with a market capitalization of approximately $26.3B. The 52-week trading range was $17.56 to $32.19. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.