PC maker HP posts fiscal first-quarter revenue that beats expectations, but its shares plunge after it cuts its annual outlook, SiliconANGLE reports on Tuesday. HP posts first-quarter earnings per share of 81 cents and revenue of $14.44 billion. That tops Wall Street estimates of 77 cents a share and revenue of $13.94 billion. Net profit falls to $545 million from $565 million a year earlier.
HP keeps its annual profit guidance at $2.90 to $3.20 per share, but Chief Financial Officer Karen Parkhill (카렌 파크힐) says results are expected to come in near the low end because of a sharp rise in memory chip prices. HP shares fall more than 6 percent after the close. The stock is down 18 percent so far this year and down 48 percent over 12 months.
Memory supplies are tightening and prices are surging as demand for AI data centers rises. HP expects memory prices in the current quarter to climb to nearly double the previous quarter. It is preparing steps such as raising PC prices, securing low-cost suppliers and reducing memory configurations to offset the impact. Parkhill says, "We are used to responding to higher costs," and takes an optimistic stance.
Chi-gyu Hwang
delight@d-today.co.kr