All eyes are on artificial intelligence PC demand and pricing for HP Inc. (HPQ) CEO Enrique Lores entering 2025.
“Some of that [cost of potential tariffs] will have to go to consumers, given the total margin we have in the categories. But again, we have to wait and see what the final rates are before we can determine what the exact plan is going to be,” Lores told Yahoo Finance on Tuesday (video above).
The comments about consumer pricing echo comments Best Buy CEO Corie Barry made during her call with reporters today.
Lores said he looks forward to working with the new Trump administration and prefers smooth trade relations between countries.
“We are a global company that does business in many parts of the world, and is involved in development in many parts of the world, and has manufacturing in many parts of the world. For us, an easy way to trade between countries is therefore the preferred option,” Lores added.
Read more: How do rates work and who actually pays them?
As tariff convos swept the markets, HP posted mixed fourth-quarter sales results after the market close.
Consumer PC sales fell 4% in the quarter, while commercial sales improved 5%. Operating margins in the PC division fell sharply year over year.
As in the previous quarter, commercial customers are upgrading their computers before Microsoft (MSFT) ends support for Windows 10 in October 2025.
Consumer PCs are under some pressure as people wait for new AI computing releases and spend more money on experiences.
According to IDC data, global shipments of traditional PCs in the third quarter of the calendar year were 68.8 million, down 2.4% year over year. Sales were hurt by rising costs and inventory replenishment in the previous quarter, IDC explained.
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Net turnover: $14.1 billion (+1.7% year-over-year) vs. $13.9 billion estimate
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Sales of personal systems: $9.6 billion (+2% YoY) versus an estimate of $9.7 billion
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Print sales: $4.5 billion (+1% year-over-year) versus an estimate of $4.2 billion
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Diluted earnings per share (EPS): $0.93 (+3% year-over-year) vs. $0.93 estimate (guidance: $0.89-$0.99)
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Weak margins: Quarterly operating margins fell to 8.5% from 9% a year ago
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Fiscal guidance for first quarter earnings per share: $0.70 to $0.76 versus $0.86 estimate
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WPA guidelines for the entire year: $3.45 to $3.75 versus $3.60 estimate
