Potential ‘Tough Environment’ Continues

During the Amplify Executive Forum Event in August, HP CEO Enrique Lores acknowledged inflation would likely impact business in the short term. “In the short term, we may hear difficult headlines about what is happening in the world with inflation,” he said, adding that there were “always opportunities” underneath those headlines. “And we need to go together after these opportunities.”

Later that month, the company posted third quarter earnings showing revenue dropping 4.1 percent to $14.7 billion, with consumer net revenue decreasing 20 percent from the year prior period. Consumer and commercial print revenue showed declines as well. Zacks expects to see continued declines in these business segments.

On an earnings call, Lores told analysts commercial PC sales -which showed modest Q3 gains of 7 percent year-over-year, would likely see a drop this time around. “We expect that tough environment to continue in Q4,” he said.