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HP reported second-quarter results that beat analysts’ estimates for revenue but missed on earnings and guidance, in part due to President Donald Trump’s sweeping tariffs. Shares sank 15% after the report.
Here’s how the company did versus analysts’ estimates compiled by LSEG:
Earnings per share: 71 cents adjusted vs. 80 cents expectedRevenue: $13.22 billion vs. $13.14 billion expected
Revenue for the quarter increased 3.3% from $12.8 billion in the same period last year. HP reported net income of $406 million, or 42 cents per share, down from $607 million, or 61 cents per share, a year ago.
For its third quarter, HP said it expects to report adjusted earnings of 68 cents to 80 cents per share, missing the average analyst estimate of 90 cents, according to LSEG. Full-year adjusted earnings will be within the range of $3 to $3.30 per share, while analysts were expecting $3.49 per share.
HP said its outlook “reflects the added cost driven by the current U.S. tariffs,” as well as the associated mitigations.
“While results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure,” HP CEO Enrique Lores said in a statement.
Lores told CNBC’s Steve Kovach that HP has increased production in Vietnam, Thailand, India, Mexico and the U.S. By the end of June, Lores said the company expects nearly all of its products sold in North America will be built outside of China.
“Through our actions, we expect to fully mitigate the increased trade-related costs by Q4,” Lores said in the interview.
HP will hold its quarterly call with investors at 5 p.m. ET.
