HP Falls on Weak Results, Outlook

HP Inc (HPQ:US) has lowered its adjusted earnings per share (EPS) projection for the full year, sending its shares over 10% lower on Wednesday.

The company's new adjusted EPS forecast for the year is in the range of $3.23 to $3.35. This adjustment comes after previously indicating a range of $3.30 to $3.50. The consensus estimate for the year was $3.34. 

Additionally, HP Inc's projected free cash flow for the year is now $3 billion, down from the prior $3.25 billion.

For this quarter, the PC maker forecasts adjusted EPS to be between $0.85 and $0.97, while the consensus was looking for $0.94.

In the third quarter, HP Inc. reported adjusted EPS of $0.86, compared to $1.03 in the same period the previous year. The net revenue for the quarter amounted to $13.20 billion, demonstrating a year-on-year decline of 9.9%. 

Street consensus was looking for EPS of $0.85 on revenue of $13.38 billion.

"While we expect another quarter of sequential growth in Q4, the external environment has not improved as quickly as anticipated and we are moderating our expectations as a result. We remain confident in our ability to drive long-term growth and value creation as we focus on the things we can control and make continued progress against our Future Ready plan,” HP Inc's CEO, Enrique Lores, commented on the performance.

Congress members Daniel Goldman and Ro Khanna were trading HPQ shares this year. Most notably, Rep. Khanna sold $15,000 - $50,000 worth of shares on April 10, when they closed at $29.74.

HPQ stock was seen trading around $28 apiece on Wednesday.