HP Inc. Targets $2 Billion Savings Amid Tariff Pressures

Published 1 days agoHPQ

HP Inc. Targets $2 Billion Savings Amid Tariff Pressures

HP Inc. has set a strategic goal to save $2 billion by the end of fiscal year 2025, primarily as a response to the challenges posed by U.S. tariffs impacting its supply chain. As part of this initiative, HP has lowered its fiscal 2025 adjusted earnings per share (EPS) forecast to a range of $3.00 to $3.30. This is a reduction from the previous estimate of $3.45 to $3.75, driven by expected slowdowns in the PC market and continued economic volatility globally. Reuters reported that these shifts are mainly due to inflationary pressures linked to these tariffs.

Among the cost-cutting strategies, HP has announced plans for up to 2,000 layoffs, which aim to save approximately $300 million annually. This is a component of their "Future Ready" restructuring program, which now targets $1.9 billion in savings by fiscal year 2025. Additionally, HP is focusing on diversifying its supply chain away from China, with the expectation that over 90% of its products sold in North America will be manufactured elsewhere by the end of the designated year, according to CRN.

In the financial results for the second quarter ending April 30, HP reported revenue of $13.22 billion, slightly exceeding estimates, yet earnings per share fell short of expectations at 71 cents compared to the expected 80 cents. The Personal Systems segment, which includes PCs, has faced elevated costs due to tariff-related expenses. Despite efforts to move production to countries like Vietnam, Thailand, India, Mexico, and the U.S., the second-quarter results did not meet targets, illustrating the ongoing impact of external economic challenges.

Share this article

Twitter Facebook LinkedIn

Recent Articles

Regeneron Shares Fall After Mixed Results in COPD Drug Trials

Regeneron Shares Fall After Mixed Results in COPD Drug Trials

11 minutes agoREGN

Regeneron Pharmaceuticals saw a decline in its shares by 9% following the release of mixed results from late-stage trials of its experimental drug, itepekimab. This drug, developed in collaboration with Sanofi, is aimed at treating chronic obstructive pulmonary disease (COPD). Reuters reported on the trials, with one study of 1,127 patients showing a 27% reduction in disease flare-ups over 52 weeks compared to a placebo. However, a second study did not meet its primary endpoint, casting doubt on the drug's approval prospects. The market reacted to this news, with Regeneron's stocks trading at $549.69, reflecting a 15% decline this year so far. Sanofi's shares also dipped nearly 5% in premarket trading. Analysts express skepticism about the drug's path forward, with Emily Field from Barclays hinting at the challenge of securing approval with these results, and Richard Vosser from J.P. Morgan suggesting that further studies may be needed. Itepekimab aims to counteract inflammation by inhibiting the interleukin-33 protein, a factor in COPD. The drug was anticipated to reach up to $5 billion in peak annual sales, potentially addressing a larger patient market than Dupixent, another treatment by Regeneron and Sanofi that's already approved for COPD. Following the trials' outcomes, it seems Dupixent will maintain its position as the go-to treatment.

Waste Management Stock Hits All-Time High as Confidence Grows

Waste Management Stock Hits All-Time High as Confidence Grows

26 minutes agoWM

Waste Management's stock is making headlines as it achieves a new all-time high, trading at $239.30 as of May 30, 2025. This marks a milestone for the company, highlighting its robust market performance and investor confidence. The stock saw a slight increase of $1.54 from the previous close, with the intraday high hitting $239.30 and the low at $237.00. Contributing to this upward momentum, the Royal Bank of Canada has recently boosted its price target for Waste Management to $229.00 from $227.00, as reported by American Banking News. In addition to favorable analyst updates, the company has posted impressive financial numbers, with a 13% revenue increase and a 21% rise in net income in the fourth quarter of 2024. Overall, for the year 2024, revenues were up by 8%, with net income climbing by 19%, and free cash flow soaring by 22%, reinforcing investor optimism. Strategically, Waste Management has been on the move, acquiring Stericycle for $7.2 billion in November 2024 to bolster its presence in medical waste management. In December 2024, the company announced a 10% dividend increase, continuing its tradition of 22 consecutive years of dividend growth. These strategic initiatives and strong financials underpin the company's impressive stock performance.

Costco's Q3 Earnings: Strong EPS and Market Response

Costco's Q3 Earnings: Strong EPS and Market Response

41 minutes agoCOST

Costco Wholesale Corporation recently announced its fiscal third-quarter earnings, showcasing strong earnings per share (EPS) while facing some sales challenges. The company reported an EPS of $4.28, which slightly surpassed analysts' projections of $4.24. Total revenue reached $61.96 billion, reflecting an 8% year-over-year increase, though it fell short of the forecasted $63.19 billion, according to Reuters. Same-store sales were a highlight, as they increased by 8% compared to projections of 6.96%, excluding gas sales. Despite outperforming on EPS and same-store sales, Costco's stock remained steady in after-hours trading, preserving a 10% rise year-to-date. To adapt to economic shifts, particularly U.S. tariffs on Chinese goods, Costco has rerouted shipments and shifted highly taxed products to markets outside the U.S. The retailer maintains a commitment to cost control, indicating that raising prices would be a last resort. Costco's strategy of offering private label products and bulk quantities continues to draw in value-conscious consumers, bolstering its sales performance.

Gap's Shares Plunge 15% Due to Tariff Impact Announcement

Gap's Shares Plunge 15% Due to Tariff Impact Announcement

56 minutes agoGPS

Gap Inc. faced a significant stock decline, with shares dropping about 15% following its announcement about the financial impact of U.S. tariffs. The company revealed that the tariffs imposed during President Trump's administration could affect its annual operating income by around $250 million to $300 million. As Reuters reported, this stark revelation caused concern among investors, leading to the sharp fall in share prices. To mitigate the impact, Gap has devised a plan to offset more than half of these costs, although it has not included the impact of these tariffs in their fiscal forecasts. The company’s decision to exclude the tariff impact from its forecasts was a significant factor contributing to investor anxiety. Despite these concerns, Gap still projects a promising future, maintaining its 2025 outlook which anticipates 1% to 2% sales growth and an 8% to 10% increase in operating income. In response to the tariffs, CEO Richard Dickson has highlighted steps to reduce Gap’s dependency on merchandise from China. By the end of 2025, the company aims for less than 3% of its merchandise to be sourced from China, ensuring no single country accounts for more than 25% of their sourcing by 2026. Meanwhile, Gap's recent quarterly performance was strong, with revenue hitting $3.46 billion and earnings per share at 51 cents, boosted by robust demand from Old Navy and the Gap brand.