Investing.com - HP on Thursday delivered softer guidance for the current quarter, warning that U.S. tariffs on China would drive up its costs.
HP Inc (NYSE:HPQ) fell more than 3% in after-hours trade following the report.
For the fiscal second quarter, HP expects non-GAAP diluted net EPS to be in the range of $0.75 to $0.85, or $0.8 at the midpoint, missing expectations for $0.85.
"HP’s outlook reflects the added cost driven by the current U.S. tariff increases on China, and associated mitigations," the company said. HP has, however, made efforts to lessen its dependence on China, saying it expects more than 90% of HP products sold in North America "will be built outside of China," by the end of 2025.
The softer guidance offset fiscal Q1 revenue that topped estimates.
For the three months ended Jan. 31, HP reported adjusted EPS of $0.74 on revenue of $13.5 billion. Analysts polled by Investing.com anticipated adjusted EPS of $0.74 on revenue of $13.38B.
Looking further ahead to fiscal 2025, non-GAAP diluted net EPS guidance was maintained in the range of $3.45 to $3.75, or $3.60 at the midpoint, slightly ahead of estimates of $3.59.
