18 days ago • Posted by William Ramstein
HP shares fall could be linked to concerns over peaking PC demand
The stronger than expected results for the April quarter made investors feel worried that pandemic-led PC demand could be coming a slowdown. Quarter ended April 30th, saw revenues reach $15.9B, up 27.3% and about $900M above the street's consensus. Consumer PC revenue was up 72% and consumer printer revenue jumping 45%. Buybacks are in, and over the last four quarters HP has bought back 17% of its stock. The stock is down 9% however. The issue is that the market has discounted the strong PC sales as there was ample evidence of surging demand. Citi analysts say the peak does not matter, bottom lines do in lowering component costs.