(Reuters) – HP Inc on Tuesday reported the steepest fall in quarterly revenue since 2016 and missed analysts’ estimates, hit by delayed computer and printer upgrades by customers in the face of high inflation and economic uncertainty.
Rising costs, tepid consumer spending and recessionary fears have pummeled several sectors across major markets including the United States, with computers and peripherals taking one of the worst hits in retail categories.
There is now a slowdown in orders from businesses, Chief Executive Enrique Lores told Reuters in an interview.
“Companies are now becoming much more careful in how they manage budgets,” he said, adding, “We continue to see consumer demand being impacted by macro.”
HP said revenue fell nearly 19% to $13.8 billion in the first quarter ended Jan. 31, missing analysts’ average estimate of $14.12 billion, according to Refinitiv data.
However, the company forecast second-quarter adjusted per share earnings in the range 73 cents to 83 cents, which came in higher than analysts’ average estimate of 76 cents.
The company also said 900 employees in the United States were taking voluntary retirement as part of its previously announced plan to reduce 4,000 to 6,000 jobs. The cost of the voluntary retirements will be recorded in the second fiscal quarter, HP said.
(Reporting by Yuvraj Malik in Bengaluru and Jeffrey Dastin in Palo Alto, Calif.; Editing by Shinjini Ganguli)