HP Inc. (NYSE:HPQ) shares fell more than 7% on Wednesday following the company reported Q3 results, with revenue of $14.7 billion coming in worse than the Street estimate of $15.69 billion. Quarterly EPS was $1.04, in line with the Street estimates.

The company expects consumer weakness to continue in the next few quarters. Furthermore, the company expects PS operating margin to decline quarter-over-quarter to the low end of the target range (5-7% in Q4) in order to lower channel inventory.

The company expects Q4/22 EPS in the range of $0.79-$0.89, compared to the Street estimate of $1.06. For the full 2022, the company expects EPS in the range of $4.02-$4.12, compared to the Street estimate of $4.30.

Analysts at Deutsche Bank provided their views on the company following the results, noting they are incrementally more cautious on IT hardware demand in 2023 due to elevated macro uncertainty, as suggested by some of the company's peers. On the flip side, the company is maniacally focused on managing its cost structure in the current environment and plans to announce a new phase of cost transformation soon.