Hewlett-Packard Co. in today’s trading closed down at lowest levels of more than last seven years after one of the competitors predicted a slowdown in the corporate purchasing in the printer market. The Stock was down by 1.9 per cent to $18.98. As of today, the stock has already dropped 26 per cent in the last one year.
Lexmark International Inc. , the printer maker, slashed its forecast for sales and profit for the second quarter yesterday , stating the weak demand from European markets and unfavorable exchange rates as the primary reasons.
Lexmark said that these trends were likely to affect the results in the 2nd half of the year as well.
For the quarter ending in April, Hewlett Packard had generated as much as one-fifth of the revenue and almost a quarter of the operating profit from its printing unit.
The firm had said that it would be combining the printer division with the personal computer unit in its efforts to cut down on the expenses and address the concerns coming out of declining profit and sales.
According to market analyst, the weakness in the stock of Hewlett-Packard today was mainly driven by Lexmark. Printing being one of the most important market components of HP, and with people not wanting to upgrade their printers; the decline in sales and growth is very likely.