HP's Profits, Smaller They Are! Tariffs, The Culprit They Be!

A Surprise Or Is It?

Hmm a report this is. HP’s second quarter the numbers they reveal. Revenue a victory it is! $13.22 billion yes. Expectations exceeded they were. But earnings alas a miss! Like a Womp rat in a T 16 missed by this much they were! Adjusted earnings per share 71 cents they are. 80 cents expected it was.

Tariffs the Dark Side?

Tariffs! Yes tariffs are the name of the game. Blame they do President Trump's tariffs. A disturbance in the Force these tariffs are. Shares 15% they sank! A great disturbance felt I have.

HP's Moves Calculating They Are

CEO Enrique Lores speaks he does. Manufacturing footprint expanding it is! Vietnam Thailand India Mexico and the U.S. production increased it has. China less dependence they seek. 'Mitigate increased trade related costs by Q4 we expect,' he says. Confident he sounds. But careful we must be. Overconfidence a path to the dark side it is.

Net Income a Shadow

Net income a shadow it casts. $406 million it is. Down it is from $607 million a year ago. Like sand slipping through fingers these profits are. "When gone am I the last of the Jedi will you be". Perhaps good financial advisors need they do.

Outlook Murky It Is

Third quarter adjusted earnings 68 to 80 cents per share expect they do. Analysts 90 cents they predicted. Full year adjusted earnings $3 to $3.30 per share. Analysts $3.49 they were expecting. 'Do or do not there is no try'. Try harder must they!

A Call to Investors

At 5 p.m. ET a call they will have. Investors listening they will be. Promises they will hear. But remember always 'Luminous beings are we not this crude matter'. Focus on the Force and good decisions you will make.