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.”
Supply Chain Relief Or Relapse?
HP in August introduced channel partners to its new supply chain chief, Earnest Nicolas, who told the audience at Amplify Executive Form that “we are going on offense” with respect to constraints.
The company in 2021 reported a $10 billion backlog because of pandemic-related supply chain disruptions. Continued snarls in China because of its “zero COVID” policy have likely impacted HP along with every other tech firm. But Nicolas, a former General Motors supply chain guru said the company needed to adjust for a new reality.
“Even before the pandemic, there were some challenging macroeconomic conditions that were already telling us it’s time to change … to pivot away from what has been historically the lean supply chain … and companies want to get back to the way things were,” he said. “Well, quite honestly, that’s over and we’ve got to think differently.”
Zacks expects continued supply chain constraints to weigh on HP’s printing division, forecasting a year-over-year revenue decline of 8.1 percent.