HP Inc’s revenue falls about 11 percent on weak PC, printer sales
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HP Inc (HPQ.N), which houses the former Hewlett-Packard Co’s legacy hardware business, reported lower-than-expected quarterly revenue as it struggles with weak demand for personal computers and printers.
HP Inc’s shares were down 2 percent at $11.96 in extended trading on Wednesday.
Revenue in the company’s personal systems business fell 9.9 percent in the second quarter ended April 30 from a year earlier, while revenue declined 15.8 percent in the printing division.
Printer demand has been hurt as corporate customers cut printing costs and consumers shift to mobile devices.
HP Inc forecast an adjusted profit of 37-40 cents per share for its third quarter.
Analysts on average were expecting 40 cents, according to Thomson Reuters I/B/E/S.
The company lowered the top end of its 2016 adjusted profit forecast to $1.65 per share from $1.69. The low end remained unchanged at $1.59.
HP’s earnings from continuing operations fell to $660 million, or 38 cents per share, in the second quarter, from $733 million, or 40 cents per share, a year earlier.
The company’s revenue fell to $11.59 billion from $12.98 billion.
Analysts on average had expected earnings of 38 cents per share and revenue of $11.72 billion.
This is HP Inc’s second quarterly results since the company split-off from Hewlett-Packard Co.
The other company, Hewlett Packard Enterprise Co (HPE.N), announced on Tuesday that it would be spinning off and merging its struggling IT services business with Computer Sciences Corp (CSC.N).
(Reporting by Alan John Koshy in Bengaluru; Editing by Maju Samuel)