HP Lifts Earnings Outlook Despite Supply-Chain Disruptions

TCEO Enrique Lores says component shortages have eased though are likely to persist this year.

HP Inc offered an upbeat earnings outlook even as ongoing supply-chain disruptions & sanctions against Russia impact its laptop & printing business.

HP joined Dell Tech Inc. & others in seeing a slowdown in lower-cost laptop sales that boomed during the pandemic,

whereas businesses are still investing in computers as staff switch from remote to hybrid work arrangements.

HP said sales continue to be slowed by global supply-chain problems and a shortage of some computer chips that has bedeviled the tech sector.

but it raised the midpoint of its adjusted annual earnings forecast by 3 cents to $4.31 a share.

The Palo Alto, Calif.-based company said that its earnings took a hit in the latest quarter from its winddown of operations in Russia

after the U.S. imposed sweeping sanctions on the country for its invasion of neighboring Ukraine.

In its print business, HP has been trying to shift its focus toward services

It lowered its nonadjusted annual earnings forecast to a range of $3.79 to $3.93 a share, from a previous forecast of $3.87 to $4.07.

Those activities helped the company partly offset the 23% decline in hardware unit numbers compared with the year-earlier period, with overall printing sales down 7%.