The stock in HP Inc. (NYSE: HPQ) plunged 12% to $15.05 per share on reporting disappointing revenues in the first fiscal second-quarter.
The computing manufacturer said in a statement Wednesday after the markets closed that its revenues in the three months through April plummeted 11% to $12.47 billion on adjusted earnings of 51 cents per share. The results were well behind FactSet’s expectations, as analysts' projected HP to report sales of $12.93 billion on adjusted earnings of 44 cents a share.
HP saw big declines from its printing revenues and hardware units, which were down 19% year-over-year and 23% respectively. Enrique Lores, the chief executive officer of HP said on a conference call that he expects things to get worse for the company next quarter.
“In commercial print, including office and graphics, we saw a significant slowdown in late March as offices closed and large events and trade shows were canceled,” Lores told analysts on the call following the company’s quarterly results.
He added, “While we believe that office and graphics usage will rebound when businesses fully reopen, we expect that Q3 will be similar to April. And thus we expect that our financial results will be more negatively impacted in Q3 than Q2.”
In other news today, General Electric Company (NYSE: GE) warned on Thursday that its 2020 free cash flow would be negative, which sent it's stock 3% lower from Wednesday’s close to $7.06 per share by midday. The news comes as GE announced that it sold 129-year-old Lighting division to the smart home company Savant Systems, in which the Wall Street Journal said the deal was valued at about $250 million.
The company, founded by the lightbulb genius Thomas Edison has uncertainties that lie ahead but watched its stock hit a 7 week high of $7.43 per share after the announcement Wednesday.
Despite trade war tensions continuing to intensify and unemployment at the Great Depression levels, investors have sidestepped the concerns and were bullish again on Thursday. At intraday, the Dow Jones gained more than 125 points, while the S&P 500 added nearly 20 points to 3,056.05.