HP Plunges After Cutting Profit Outlook on Tariffs, Economy

Shares of HP Inc. dropped as much as 13% on Thursday after the company issued a weak profit outlook and cut its annual earnings forecast, pointing toward a weaker economy and continuing impact from US tariffs against China.

Earnings, excluding some items, will be 68 cents to 80 cents a share in the period ending in July, the maker of computers and printers said Wednesday in a statement. Analysts, on average, estimated 91 cents. Fiscal second-quarter profit was 71 cents a share, compared with the average estimate of 81 cents. Profit was dented by 12 cents from the impact related to tariffs and HP’s spending to move manufacturing out of China, said Chief Financial Officer Karen Parkhill.