HP Offers upbeat earnings outlook Despite supply-chain disruptions

HP Inc. supplied an upbeat income outlook while ongoing supply-chain disruptions and sanctions in opposition to Russia affect its laptop and printing business.

According to engineering equipment companies, computer demand on Tuesday is largely driven by sales to commercial customers in recent months. HP, along with Dell Technologies Inc. and other companies saw slowed sales of fast-growing cheap laptops during the pandemic, while companies are still investing in computers as employees switch from remote to hybrid work arrangements.

According to HP, sales continue to be curtailed by global supply chain issues and a shortage of some computer chips that plague the tech sector. Both of these factors limit the technology industry's ability to meet strong demand.

Despite a recession in the supply chain and setbacks related to Russia, HP raised the midpoint of adjusted full-year earnings guidance by 3 cents to $4.31 per share. It lowered its unadjusted full-year earnings forecast from the previous forecast of $3.87 to $4.07 per share to the range of $3.79 to $3.93 per share.

In the printing business, HP is shifting its focus to services. These activities partially offset the 23% year-over-year decrease in hardware units, resulting in a 7% decrease in overall printing revenue.