HP Q4 Earnings Preview: Supply Chain Issues, Poly Update, Sales Slump
In a precarious year for Big Tech, HP Inc. will likely post lower revenue as expected, but the company should be eager to begin detailing its new Poly business and any supply chain constraint relief. HP CEO Enrique Lores in August foreshadowed “difficult headlines.”
HP Inc. will announce its fiscal fourth quarter 2022 earnings Tuesday, and analysts at Zacks are expecting a revenue decline of more than 12 percent year over year.
The Zacks Consensus Estimate tags HP’s Q4 revenue at $14.63 billion, suggesting a decline of 12.3 percent from the prior year’s fourth quarter results. But the research firm notes that HP has beat its consensus in three of the last four quarters by a positive surprise of 3.6 percent.
“HP’s fourth-quarter performance is likely to have witnessed a negative impact of the weak consumer demand for PCs, supply-chain issues and high inventory levels. HP had witnessed the robust demand for its PCs during the pandemic-led work-and-learn-from-home wave. However the reopening of economies and offices, inflationary pressure and recession concerns have been waning the demand for PCs,” the report states.
Here are three things to watch during the earnings call.