Shares of (NYSE: HPQ) dropped 4% during after-hours trading on May 30 following the PC and printer maker's latest earnings report. For the second quarter of fiscal 2023, which ended on April 30, revenue fell 22% year over year to $12.9 billion and missed analysts' estimates by $130 million. Its adjusted earnings per share (EPS) declined 26% to $0.80 but still cleared the consensus forecast by $0.04.
HP's headline numbers were disappointing, but they weren't too surprising. It experienced a growth spurt during the pandemic as more consumers purchased new PCs for remote work, online classes, and video games, but those tailwinds dissipated in a post-pandemic world.
Its commercial PC and printing businesses offset some of that post-pandemic slowdown as companies upgraded their hardware again, but that recovery was disrupted by macro headwinds over the past year.
Source Fool.com