HP Inc. says Russia sanctions to cut profit by 3 cents a share

HP Inc. Chief Executive Officer Enrique Lores said the computer maker’s quarterly profit will take a hit of as much as 3 cents a share because of halted exports to Russia, a result of global sanctions following the invasion into Ukraine.

“We have already stopped shipments of every product that is prohibited by the sanctions,” Lores said in an interview. “It’s a small part of our business.”

The Palo Alto, California-based company still expects profit, excluding some items, of as much as $1.08 a share in the period ending in April, topping Wall Street’s expectations. 

In the fourth quarter of 2020, HP was the largest supplier of PCs to Russia with 18% market share, according to research firm IDC. More current figures weren’t available, but Russia remains a small part of the global PC market, accounting for just 2% of industrywide shipments in 2021, Sanford C. Bernstein & Co. analysts said Monday in a report.  

“We would not expect sanctions and export controls on Russia to have any real material impact on the various end markets that are major drivers of semiconductor demand,” the analysts wrote.