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HP’s Sales Decline in Final Earnings Before Split

November 24, 2015

Meg Whitman, chief executive officer and president of Hewlett-Packard, speaks during the grand opening of the company's Executive Briefing Center in Palo AltoMeg Whitman, chief executive officer and president of Hewlett-Packard, speaks during the grand opening of the company's Executive Briefing Center in Palo Alto
Meg Whitman, chief executive officer of Hewlett Packard EnterprisePhotograph by Stephen Lam — Reuters

(Reuters) – Hewlett-Packard, the tech pioneer that split into two separate companies this month, reported a fall in revenue for the fifth straight quarter, hurt by lower PC sales and a slump in demand from businesses.

The results are the last for Hewlett-Packard before HP Inc , housing the company’s printer and PC businesses, and Hewlett Packard Enterprise Co, holding its corporate hardware and services businesses, start to report separately.

Hewlett-Packard’s revenue fell 9.5% to $25.71 billion in the fourth-quarter ended Oct. 31.

Net income fell to $1.32 billion from $1.33 billion a year earlier. But on a per share basis, profit rose to 73 cents per share from 70 cents, based on fewer shares outstanding.

HPE’s shares (HPE) were up 2.3% at $14 in extended trading on Tuesday, while those of HP Inc (HPQ) fell 4% to $14.

Revenue in HP‘s personal computer and printer businesses fell about 14%.

Worldwide PC shipments declined 7.7% in the third quarter, despite the much-awaited release of Windows 10 in July, according to research firm Gartner.

In the company’s enterprise services division, revenue fell 9%, while revenue from its enterprise group rose 2%.

HPE, the faster growing of the two new companies, maintained its full-year adjusted profit forecast of $1.85-$1.95 per share, while HP Inc said it expected a full-year adjusted profit of $1.59-$1.69 per share.

Up to Tuesday’s close of $13.69, HPE shares had fallen 7% since their market debut on Nov. 2. In contrast, HP Inc’s shares, which closed at $14.64, had risen about 20%.

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(This story was updated with additional information)