Acer's Q2 Results Hint at Continued Challenges in PC Market; H-P (HPQ) on Watch

August 20, 2012 9:34 AM EDT
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According to preliminary data out Monday, Acer's sales in the second-quarter of 2012 rose 8.3 percent from last year to $3.7 billion with operating income up over 200 percent to $14.48 million. Net profit came in at $1.87 million with EPS of NT$0.02.

The company commented that PC demand led to a sequential drop in overall sales, with pressure from Europe, the U.S., and unfavorable economic conditions all contributing to the downturn.

Acer's PC shipments grew from the first quarter.

Shipments of Microsoft's (Nasdaq: MSFT) Windows 8-based products will start in August and September, though third-quarter revs are expected to remain flat compared with the second quarter.

Hewlett-Packard (NYSE: HPQ) is expected to report third-quarter 2012 results on August 22nd. Currently, the Street expects EPS consolidation of 11 percent on a sales drop of 3.4 percent. Given that H-P still remains the world leader in PC shipments, investors might want to heed Acer's warning into the tape.

Shares of H-P are down in early trading.

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