Why did HAS's Q3 earnings fall short of forecasts?

The Q3 adjusted EPS of HP fell short of forecasts by $0.86 – $0.83 billion, missing the mark by approximately 1.2%. This deviation from expected earnings can be attributed to several key factors:

1. **Revenue Shortfall**: Although HP's Q3 revenue exceeded expectations, the slight shortfall in revenue could contribute to the overall earnings miss. The company's revenue for the quarter was $13,500 million, slightly below the estimated $13,376 million.
2. **Expense Factors**: Increased expenses, particularly in the areas of operations and administrative costs, could have impacted net income. The company's pretax profit was $827 million, with an adjusted net income of $800 million, indicating that a portion of the revenue was absorbed by higher-than-expected expenses.
3. **Market Conditions**: Broader market conditions and competitive dynamics may have played a role in HP's financial performance. The technology sector is highly competitive, and companies like HP face challenges from rivals vying for market share and customer loyalty.

In summary, HP's Q3 earnings fell short due to a combination of slightly lower-than-expected revenue and higher expenses. These factors, coupled with broader market conditions, contributed to the earnings miss.