HP Inc’s Revenue Falls on Weak PC, Printer Sales

February 24, 2016, 10:14 PM UTC
Attendees use their mobile devices while waiting in line during an HP event in San Francisco, California, U.S., on Wednesday, Feb. 9, 2011.
Bloomberg via Getty Images

(Reuters) – HP Inc, which houses former Hewlett-Packard’s legacy hardware business, reported a near 12% drop in quarterly revenue, as it struggles with weak demand for PCs and printers.

Revenue in the company’s personal systems business fell 13% in the first quarter ended Jan. 31, while it declined 17% in its printing division from a year earlier.

PC sales have been falling sharply worldwide and the launch of Windows 10 has so far failed to rekindle demand.

Printer demand has been hurt as corporate customers cut printing costs and consumers shift to mobile devices.

The company, which is reporting results independently for the first time since being spun off from Hewlett-Packard, forecast adjusted profit of 35 to 40 cents per share for its second quarter ending April 30.

Analysts on average were expecting 39 cents, according to Thomson Reuters I/B/E/S.

HP Inc maintained its 2016 adjusted profit forecast at $1.59 to $1.69 per share.

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The company’s earnings from continuing operations fell to $650 million, or 36 cents per share, in the first quarter from $770 million, or 41 cents per share, a year earlier.

Revenue fell to $12.25 billion from $13.86 billion.

Analysts on average had expected earnings of 36 cents per share and revenue of $12.2 billion.

HP Inc’s shares were unchanged at $10.82 in extended trading on Wednesday. They had fallen more than 13% since the spinoff in early November to Wednesday.

Hewlett-Packard Enterprise, also spun off from Hewlett-Packard, is expected to report results on March 3.

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