HP Inc. ( HPQ ) stock is trading lower Thursday after the company reported worse-than-expected earnings for the second quarter. Multiple analysts downgraded the stock following the report.

What To Know: HP reported adjusted earnings per share of 71 cents, missing the consensus estimate of 80 cents. In addition, the company reported sales of $13.22 billion, beating the consensus estimate of $13.15 billion, and representing a 3.3% year-over-year increase.

“In Q2, we delivered solid revenue growth, led by strong Commercial performance in Personal Systems and continued momentum behind our future of work strategy,” said Enrique Lores, President and CEO of HP.

“While results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure. These decisive actions strengthen our foundation and position us to deliver long-term sustainable growth.”

Outlook: The company sees third-quarter adjusted earnings per share from 68 cents to 80 cents, versus the consensus estimate of 90 cents.

HP now expects fiscal-year adjusted earnings per share of $3.00 to $3.30, versus the consensus estimate of $3.49. The company previously anticipated adjusted earnings per share of $3.45 to $3.75.

“In light of the increased macroeconomic uncertainty, we have adjusted our outlook to reflect moderated demand and the net impact of trade-related costs,” said Karen Parkhill, CFO of HP.

Following the company’s quarterly results, analysts from JPMorgan and Wells Fargo downgraded the stock to Neutral ratings. Several other analysts lowered price targets ranging from $17 to $25, according to Benzinga Pro.

HPQ Price Action: At the time of publication, HP stock was down 7.67% at $25.12, according to data from Benzinga Pro.

Read Next:

AMD Stock Rises On Nvidia’s Blowout Quarter And AI Momentum

Image: Shutterstock.