HP Tumbles 10% After-Hours Despite Q3 Beat as Memory Costs Loom
HPQ sits 68% above its 52-week low of $17.56.
Summary
HP shares fell 10% in after-hours trading to $27.63 despite beating Q3 estimates. The company reported EPS of $0.83 on revenue of $15.7B, versus consensus of $0.66 and $14.4B. The drop reflects concerns over rising memory chip costs, which are squeezing margins and dampening PC sales. This follows the earlier guidance release of Q4 adjusted EPS of $0.69-$0.79, which may have disappointed investors. The stock is down about 20% from its 2024 highs, and analyst sentiment has soured, with only 2 of 19 rating it a Buy. The new fragment highlights that HP continues to be squeezed by 'RAMageddon', referring to the ongoing memory cost pressures.
At the time of this announcement, HPQ was trading at $29.51 on NYSE in the Technology sector, with a market capitalization of approximately $27B. 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.