HP stock slides towards worst day since 2011, Morgan Stanley sees ‘no quick fix’ for supplies woes


Shares of HP Inc.

HPQ, -16.12%

are down 16.1% in Thursday morning trading and on track for their biggest single-day drop since August 2011 after the company posted a disappointing earnings report. “The company disclosed an unexpected printing supplies guide down in FY19 that is reminiscent, though not parallel in our view, of the issues the company faced in FY16,” wrote Morgan Stanley’s Katy Huberty. :There is no quick fix to the supplies issue given channel inventory now needs to be worked down but additional cost cuts and more consistent performance in the rest of the business means the company should still be able to achieve EPS and FCF guidance.” HP shares has lost 14.4% over the past three months, as the S&P 500

SPX, -0.26%

has risen 1.6%.

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