Latest news with #EnriqueLores
Yahoo
03-06-2025
- Business
- Yahoo
Trump trade war has caused these 3 consumer companies to aggressively rethink China
Executives at US consumer multinationals aren't waiting for an end game on the Trump administration's trade war with China. They are picking up the nuts and bolts from their legacy China operations and moving to relatively smooth trade partners such as India and Thailand. The goal: Protect profits and protect the stock price by having a better "story" to pitch nervous investors scouring financial filings for outsized China supply chain exposure. "Tariffs announced in April were higher and impacted more countries than we were expecting, and this clearly has impacted the operating profit that we had in the quarter," HP Inc. (HPQ) Enrique Lores told Yahoo Finance. "We took actions fast to try to mitigate the cost increases. We accelerated supply chain changes. We redesigned our logistics network." The trade situation with China remains precarious at best, adding a persistent unease among execs who get paid big dollars to plan for the future. Last month, the US temporarily lowered tariffs imposed on goods from China from 145% to 30%. China's retaliatory tariffs on US goods dropped from 125% to 10%. Trump accused China on Friday of violating the tariff truce, with China responded in kind this week by saying the US has also displayed wrongdoing. The Trump administration is also fighting the courts, as the US Court of International Trade ruled many of its tariffs were illegal last week. A separate court has temporarily paused that decision. Read more: The latest news and updates on Trump's tariffs "I think what the administration is doing in terms of trade is experimenting," Brookings Institution's Ben Harris said on Yahoo Finance's Opening Bid podcast (see video above). "It's seeing how far it can push the US economy. It's seeing how far it can push US consumers, and it's seeing how far it can push our trading partners." Harris most recently served as assistant secretary for economic policy and chief economist at the US Treasury Department in the Biden administration. Here are three well-known US consumer companies uprooting their China supply chains. HP — and the computer industry at large — has long relied on China to make cheap parts for computers and printers. Prices on computers and printers often deflate quickly due to frequent tech advancements, making it essential for manufacturers like HP, Dell (DELL), and Xerox (XRX) to keep production costs down. But Trump's trade war on China has sent HP off to rewire its supply chain. Here's what HP CEO Enrique Lores recently told Yahoo Finance: "We have moved production from China into Vietnam, Thailand, Mexico, some to India, and some to the US. What we did is accelerated the rebalancing that we had announced before. If you remember last quarter, we talked about having less than 10% of the product shipped to North America coming from China. At the end of September, we moved that up, and now by June, we expect almost no product coming to North America coming from China. So it's a very significant change. We have also redesigned our logistics network to remove the US from products that were being sent to Canada or to Latin America." Read more: What Trump's tariffs mean for the economy and your wallet China has for decades been the center for apparel production. The country's extensive manufacturing base has allowed clothing operators to profitably churn out high volumes of apparel and sneakers while not sacrificing too much on quality. The trade war between the US and China is shifting that dynamic, albeit slowly. To navigate the volatile trade backdrop, Gap is lowering its sourcing from China from less than 10% in 2024 to less than 3% exiting the year. By the end of 2026, no single country should account for more than 25% of its sourcing. The company is also doubling its vendor sourcing for American-grown cotton in 2026. Gap (GAP) CEO Richard Dickson told Yahoo Finance: "Like any business, we're constantly navigating complexity. And there's a lot of complexities in running a business. And in this case, tariffs is a focus. But it's our responsibility to do so without ever compromising the long-term integrity of our strategy." Similar to HP Inc., Logitech (LOGI) has relied on China for years to make its computer mice and keyboards. But by the end of 2025, the company plans for only about 10% of products sold in the US to be sourced from China. Currently, that level is 40%. "We're in the fortunate position that we have invested in a really diversified manufacturing footprint with China plus five other countries today," Logitech CEO Johanna Faber told analysts on a late April earnings call. "So while I won't say it's easy to shift volume, our team is doing a fantastic job at shifting volume fast to mitigate tariff impacts." Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Sign in to access your portfolio
Yahoo
30-05-2025
- Business
- Yahoo
Why HP Stock Sagged by 11% This Week
The company published its fiscal second-quarter earnings. It disappointed investors with an earnings miss and lowered full-year guidance. 10 stocks we like better than HP › The combination of an earnings miss and disappointing guidance put the hurt on veteran tech stock HP (NYSE: HPQ) this week. Over the past five trading days the company's share price withered by 11%, according to data compiled by S&P Global Market Intelligence. Just after market close on Wednesday, HP published figures from its fiscal second quarter of 2025, revealing that its net revenue was $13.2 billion. That was 3% higher than in the same period of fiscal 2024. The dynamic was markedly different on the bottom line, as non-GAAP (adjusted) net income sank to $678 million ($0.71 per share) from the year-ago profit of $812 million. Analysts weren't expecting such a steep drop in profitability; on average, they were modeling adjusted net income of $0.79 per share. On the plus side, the company beat the pundit consensus of under $13.1 billion for net revenue. In the earnings release, HP quoted CEO Enrique Lores as saying that during the quarter, the company had "delivered solid revenue growth, led by strong commercial performance in personal systems and continued momentum behind our future-of-work strategy." HP is bracing for impact on tariffs, which affect its operations because many of its components are sourced abroad. It lowered its guidance for the entirety of the fiscal year, setting the forecast for adjusted per-share earnings at $3.00 to $3.30. That's down considerably from its previous estimate of $3.45 to $3.75. Free cash flow should come in at $2.6 billion to $3 billion, meanwhile. The PC market hasn't been lively for years, and given the enduring popularity of mobile devices, I don't expect this to change. That market will also be affected by the tariff war if it drags on. None of this makes me confident about HP stock. Before you buy stock in HP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and HP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends HP. The Motley Fool has a disclosure policy. Why HP Stock Sagged by 11% This Week was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
30-05-2025
- Business
- Globe and Mail
Why HP Stock Sagged by 11% This Week
The combination of an earnings miss and disappointing guidance put the hurt on veteran tech stock HP (NYSE: HPQ) this week. Over the past five trading days the company's share price withered by 11%, according to data compiled by S&P Global Market Intelligence. Revenue and profitability went in opposite directions Just after market close on Wednesday, HP published figures from its fiscal second quarter of 2025, revealing that its net revenue was $13.2 billion. That was 3% higher than in the same period of fiscal 2024. The dynamic was markedly different on the bottom line, as non-GAAP (adjusted) net income sank to $678 million ($0.71 per share) from the year-ago profit of $812 million. Analysts weren't expecting such a steep drop in profitability; on average, they were modeling adjusted net income of $0.79 per share. On the plus side, the company beat the pundit consensus of under $13.1 billion for net revenue. In the earnings release, HP quoted CEO Enrique Lores as saying that during the quarter, the company had "delivered solid revenue growth, led by strong commercial performance in personal systems and continued momentum behind our future-of-work strategy." Earnings guidance trimmed HP is bracing for impact on tariffs, which affect its operations because many of its components are sourced abroad. It lowered its guidance for the entirety of the fiscal year, setting the forecast for adjusted per-share earnings at $3.00 to $3.30. That's down considerably from its previous estimate of $3.45 to $3.75. Free cash flow should come in at $2.6 billion to $3 billion, meanwhile. The PC market hasn't been lively for years, and given the enduring popularity of mobile devices, I don't expect this to change. That market will also be affected by the tariff war if it drags on. None of this makes me confident about HP stock. Should you invest $1,000 in HP right now? Before you buy stock in HP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and HP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
29-05-2025
- Business
- Yahoo
Watch These HP Price Levels as Stock Tumbles After Company Cuts Outlook Due to Tariffs
HP shares fell sharply Thursday after the company missed analysts' profit expectations and issued a light outlook, citing increased costs from tariffs. Thursday's decline followed a breakdown from a rising wedge pattern in yesterday's trading session. Investors should watch important support levels on HP's chart around $25, $23 and $21, while also monitoring a key overhead area near $ (HPQ) shares plunged Thursday after the PC maker missed analysts' profit expectations and issued a light outlook, citing increased costs from tariffs. The PC maker said its guidance reflects tariff costs and actions taken to mitigate associated trade risks, adding that it had responded quickly to expand its manufacturing footprint and reduce its cost structure. CEO Enrique Lores said during the earnings call that additional tariff costs "could not be fully mitigated in the quarter," and that HP has "implemented price increases to help offset cost pressure." HP shares fell more than 8% Thursday, posting the biggest declines in the S&P 500. The stock has lost nearly a quarter of its value so far in 2025 as investors assess the cost of the company's ongoing efforts to diversify its supply chain while it navigates the Trump administration's unpredictable trade policies. Below, we take a closer look at HP's chart and use technical analysis to identify price levels worth watching out for. Since bottoming out early last month, HP shares have staged a countertrend rally, forming a rising wedge pattern in the process. In an ominous sign, the stock broke down below the pattern's lower trendline on above-average volume in Wednesday's trading session ahead of the company's quarterly report, paving the way for a continuation move lower. It's also worth pointing out that the relative strength index has recently fallen below the 50 threshold, signaling weakening price momentum. Let's identify three important support levels to watch and also locate a key overhead area worth monitoring during future upswings. The first lower level to watch sits around $25, right about where the stock closed on Thursday. This area may provide support near a brief period of consolidation within the rising wedge pattern and the prominent September 2023 trough. A move below this level could see HP shares fall to the $23 region. The price may attract support here near the low of the stock's first minor dip after bouncing from its early-April low. Selling below this level opens the door for the shares revisiting lower support at $21. Investors may seek longer-term buy-and-hold entry points in this area near last month's tariff-driven low. During future upswings in the stock, investors should monitor the $29 area. A recovery effort into this region would likely meet overhead resistance near the rising wedge pattern's peak, which also closely aligns with a temporary pause in the stock's downtrend during March. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia
Yahoo
29-05-2025
- Business
- Yahoo
HP stock plunges as tariffs slam the company
HP shares fell as much as 15% after reporting tariffs-hit earnings. The company has ramped up production outside of China, including in the US. Trade tensions have dominated this earnings season. HP dived as much as 15% in extended trading on Wednesday after reporting second-quarter earnings that were hit hard by tariffs. "Due to additional tariff costs that could not be fully mitigated in the quarter, our non-GAAP operating profit fell short of expectations," HP's CEO, Enrique Lores, said on Wednesday's earnings call. Second-quarter revenue rose 3.3% to $13.22 billion, beating analyst expectations of $13.14 billion. Profit fell 17% to $700 million compared to the same period last year, missing expectations. The earnings report and guidance disappointed investors despite HP's efforts to dampen the impact from tariffs by diversifying its supply chain. "We recently increased our production coming from Vietnam, Thailand, India, Mexico, and the US," Lores said. "By the end of June, we now expect nearly all of our products sold in North America will be built outside of China." Later in after-hours trading, the company pared losses to about 8%. HP's stock has slumped 16% so far this year, in part because of earnings misses and underperformance compared to peers. Trade tensions have been a prominent theme this earnings season. Some companies including General Motors, Chipotle, and PepsiCo lowerd their forecasts for upcoming quarters. Others, such as Snap, Delta Air Lines, and American Airlines, scrapped guidance completely, citing too much uncertainty from import duties. The US imposed a 145% duty on products made in China, as part of Trump's sweeping "Liberation Day" tariffs in April. It reduced them to 30% earlier this month. On Wednesday, a federal court found that Trump does not have the authority to impose his sweeping tariff strategy. The unanimous decision by the three-judge panel came during ongoing trade negotiations between the administration and countries around the world. On Friday, Trump threatened a new tariff on the European Union, but backed down from the plan over the weekend. The US Court of International Trade's three-judge panel was unanimous in its ruling, declaring that the tariffs imposed by the Trump administration would be vacated. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
