HP Inc (NYSE:HPQ) shares fell more than 6% in early trade on Thursday after the technology company trimmed its full-year outlook, citing added costs due to US tariffs, and reported mixed earnings for the fiscal second quarter.
The company now expects full-year earnings per share (EPS) in the range of $3 to $3.30, below the Street consensus of $3.50.
“In light of the increased macroeconomic uncertainty, we have adjusted our outlook to reflect moderated demand and the net impact of trade-related costs,” HP CFO Karen Parkhill said in a statement.
“We are executing targeted mitigation strategies, and assuming current conditions remain, we expect to fully offset these costs by Q4.”
Also weighing on the stock was a quarterly profit miss. For fiscal Q2, EPS fell 13% year-over-year to $0.71, below estimates of $0.80.
Revenue of $13.22 billion, up 3.3% year-over-year, slightly beat the $13.14 billion expected.
Personal Systems revenue grew 7% to $9 billion, while Printing revenue was down 4% from the same period last year at $4.2 billion.
“In Q2, we delivered solid revenue growth, led by strong Commercial performance in Personal Systems and continued momentum behind our future of work strategy,” HP CEO Enrique Lores said.
“While results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure.”
Shares of HP traded down 6.9% at about $25 on Thursday morning.