HP Inc, the legacy printer and PC business of the former Hewlett-Packard, forecast a current-quarter adjusted profit largely below analysts’ estimates amid waning demand for its printers.
The company’s shares (hpq) were down nearly 2.2% after the bell.
HP Inc said it expects an adjusted profit 35-38 cents per share for the first quarter. Analysts on average were expecting 38 cents per share, according to Thomson Reuters I/B/E/S.
Revenue from the company’s printer business fell nearly 8.2%in the fourth quarter, from a year earlier.
To beef up its fading printer business, HP in September said it would buy Samsung Electronics’ printer business for $1.05 billion.
HP Inc’s net earnings plunged to $492 million, or 28 cents per share, in the quarter ended Oct. 31, from $1.32 billion, or 73 cents per share.
Excluding items, the company earned 36 cents per share, in line with analysts’ estimate.
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The company’s net revenue rose 2% to $12.51 billion, above the average analyst estimate of $11.9 billion.
Meanwhile, Hewlett Packard Enterprise Co, which was also spun off from Hewlett-Packard Co and now holds the corporate hardware and enterprise software division, reported a better-than-expected fourth quarter profit, helped by demand for it servers and storage services.
Excluding items, HPE earned 61 cents per share beating the average analyst estimate of 60 cents.