Do you ❤️ the '90s? “We’re now engaging on a new battlefield and it’s called ‘online,’” HP's CEO said, curiously, Wednesday.
HP HPQ, -0.21% revealed Wednesday that one of its biggest money-makers, selling printing supplies, faces new pressure due to internet sales, which is squeezing previously juicy margins, especially in some overseas markets. HP seemed to be taken by surprise that customers buy their printing supplies online, where they said they have less of the market and pricing isn’t to HP’s benefit.
The PC and printer giant reported fiscal first-quarter results that were weaker than expected, mostly due to an unexpected 3% revenue drop in the supplies business. A decline in HP’s stock after the numbers hit worsened considerably as the company’s conference call went on, ultimately ending up with a near 13% decline in after-hours trading.
“More online purchasing has also led to a growing market for alternatives,” said an HP spokeswoman. “We are implementing share improvement plans, including online programs and targeted marketing, to address this.” HP’s forecast calls for the slowdown in supplies to continue through the rest of the year, citing pricing issues and high inventories. HP said supplies revenue will be down about 3% this year, after previously guiding for that revenue to be flat or to gain slightly in 2019.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stocks making the biggest moves after hours: L Brands, Square, HP and moreSee which stocks are posting big moves after the bell on February 27.
Read more »
Tech stocks take a beating after hours on disappointing earnings reportsBox, HP, Square, Fitbit and Elastic are among the technology companies that declined after reporting earnings on Wednesday.
Read more »
U.S. Cyber Command operation disrupted Internet access of Russian troll factory on day of 2018 midtermsExclusive: A U.S. military operation disrupted a Russian troll factory's Internet access on the day of the 2018 midterms
Read more »
U.S. disrupted internet access of Russian troll factory on day of 2018 midtermsThe strike on the Internet Research Agency in Russia, a company underwritten by an oligarch close to President Vladimir Putin, was part of the first offensive cyber campaign designed to thwart attempts to interfere with a U.S. election, officials said.
Read more »
Michael Cohen to Congress: 'I am not protecting Mr. Trump anymore'The former Trump attorney, who called the president a 'racist' and 'con man,' testified that Roger Stone had told Trump in advance about a WikiLeaks emails release that would hurt Hillary Clinton's campaign.
Read more »
Cohen: I am partially responsible for 'silly' behavior in Congress todayMichael Cohen, President Trump's former fixer, testifies before the House Oversight Committee in a public hearing. Watch the live stream and follow here for the latest.
Read more »
'I am ashamed’: Michael Cohen seeks redemption as he torches TrumpCohen testified that Trump knew about plans to dump Democratic emails during the 2016 presidential campaign, as well as the Trump Tower meeting in June 2016
Read more »
Michael Cohen: 'I am ashamed because I know what Mr. Trump is'The president's former lawyer and fixer reveals documents he says show Trump’s net worth, as well as receipts of payments to Stormy Daniels.
Read more »