HP Inc (NYSE:HPQ) stock rose% (As on July 6, 11:39:48 AM UTC-4, Source: Google Finance) after getting cut to In Line from Outperform at Evercore ISI. Evercore cut HP earnings forecasts and lowered price target for its shares from $43 to $36 as it expects that the rest of the year will be difficult for the PC market and the company could end up with high inventory levels. “More broadly, there is a risk to both consumer and commercial demand as inflation persists and macro remains uncertain,” Evercore analyst Amit Daryanani  wrote. “Important to note, the pain is more acute in consumer but could move into commercial.” In his opinion declining consumer demand in several markets, including Europe and China will have a negative impact on the PC sales, and expects that total industry shipments will drop below 300 million for the year, versus the current expectations around 325 to 330 million. And softness could be broader in beyond consumer markets. Therefore, the investment firm has started seeing a lot of concern out there on slowing PC shipments, deflationary prices for PCs.

For the fiscal 2022 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.91 to $0.96 and non-GAAP diluted net EPS to be in the range of $1.03 to $1.08. Fiscal 2022 third quarter non-GAAP diluted net EPS estimates exclude $0.12 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, Russia related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items.

For fiscal 2022, HP is updating its estimate of GAAP diluted net EPS to be in the range of $3.79 to $3.93 and raising its previous estimate of non-GAAP diluted net EPS to be in the range of $4.24 to $4.38. Fiscal 2022 non-GAAP diluted net EPS estimates exclude $0.45 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, Russia related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items. For fiscal 2022, HP anticipates generating free cash flow of at least $4.5 billion.

Meanwhile, HP has returned 362% of its second quarter free cash flow to shareholders. HP exited the quarter with $4.5 billion in gross cash, which includes cash and cash equivalents and short-term investments of $5 million.