On today's episode of Asking for a Trend, hosts Josh Lipton and Seana Smith discuss two important earnings reports from the technology industry: HP Inc. (HPQ) and CrowdStrike (CRWD).
HP Inc. (HPQ) reported mixed third-quarter results as adjusted earnings of $0.83 per share fell short of Wall Street estimates of $0.86, while revenue of $13.5 billion beat expectations of $13.37 billion. HP Inc. CEO Enrique Lores discusses HP's earnings with Yahoo Finance Editor-in-Chief Brian Sozzi:
“I think this quarter shows the momentum we've built. In fact, this is the first quarter in nine where we're seeing an increase in revenue again, which is an important change and is really driven by the demand we're seeing in the PC space, particularly in commercial PCs and also in what we call our growth businesses… On the other hand, we also continue to see some pressure, particularly in the printing space,” Lores says of the quarter.
CrowdStrike Holdings reported better-than-expected second-quarter results, the cybersecurity company's first quarterly report since a software update brought down the systems of many of its customers worldwide.
Matt Hedberg, managing director and head of global TIMT research at RBC Capital Markets, says the report is “better than feared,” although he would like more information on potential customer churn following the outage. He also expects CrowdStrike to offer discounts to keep customers happy. However, he believes this incident “could be in the company's rearview mirror later this year” because “CrowdStrike is in the business of protecting devices from malicious attacks, which has not happened.” Ultimately, he believes CrowdStrike will emerge from the crisis “as a stronger vendor.” [with] There are even better controls in place.”
This article was written by Melanie Riehl
