> HP Inc. gave a profit outlook for the current quarter that fell short of expectations, citing the impact of rising component costs and tariffs on goods from China.
> Earnings, excluding some items, will be 75 cents to 85 cents a share in the period ending in April, the company said Thursday in a statement. Analysts, on average, estimated 85 cents.
> Rising component costs and US tariffs on imports from China are weighing on profit, Chief Executive Officer Enrique Lores said in an interview. Still, a diverse supply chain is helping HP mitigate most of the impact, and by the end of the fiscal year less than 10% of goods sold in North America will come from China, he added.
> In the fiscal first quarter, which ended Jan. 31, revenue increased 2.4% to $13.5 billion, led by a 10% expansion in sales for business computers. That exceeded analysts’ average estimate of about $13.4 billion.
> A recovery in the long-ailing personal computer market has started to materialize in recent quarters. Shipments of PCs ticked up 1.8% in the fourth quarter of 2024, according to IDC, an industry research firm.
> HP also affirmed its previous guidance for 2025 free cash flow of as much as $3.6 billion and annual adjusted profit of as much as $3.75 per share.
