HP Not Looking Good, Printer Sales Down 19% Supply Issues With PC’s
As Hewlett Packard struggles to supply Australian retailers and the B2b specialist channel with stock, the US Company has reported a 7% decline in overall revenues.
Overnight shares in the notebook and printer Company fell 3.5% after the Company reported that revenue from personal computers and related systems decreased to $8.3 billion in the period, with declines across notebook sales, desktops, and workstations.
HP Australia has not said how much their local operation has been impacted by COVID-19.
This was despite a surge in demand for work at home goods spaning both printers, desktop PC’s and notebooks.
Sales in the printing division fell 19% to $4.15 billion, with ink supplies dropping 15%. Consumer hardware revenue declined 16% and commercial devices decreased 31%.
The Company said that declining quarterly sales and the coronavirus pandemic disrupted their supply chain. There was no indication of when the Company who recently missed out on a $46M Victorian Government Education contract to Acer will get their supply back to a manageable position.
Revenue fell 11% to US$12.5 billion in the period ended April 30. Analysts, on average, estimated $12.9 billion, according to data compiled by Bloomberg.
Rival Xerox Holdings has targeted HP in a hostile takeover bid before dropping the effort March 31, citing economic uncertainty caused by the pandemic.
Bloomberg said that before the Covid-19 outbreak, HP had committed to a $16 billion program to return more money to investors while Chief Executive Officer Enrique Lores has sought to shore up the print division he once ran.
Lores said in an interview he remained committed to the principles of the plan, which called for $15 billion in share repurchases, but the macro environment has changed. HP said it will update investors during a conference call later Wednesday.