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HP Inc’s Sales Tumble On Weak PC, Printer Sales

Hewlett-Packard Co. Products As Plans In Place To Split Into Two Separate CompaniesHewlett-Packard Co. Products As Plans In Place To Split Into Two Separate Companies
A HP logo sits on top of a desktop computer's shipping box, produced by Hewlett-Packard Co., in a warehouse in this arranged photograph taken in London, U.K., on Oct. 6, 2014. Simon Dawson — Bloomberg via Getty Images

(Reuters) – HP Inc, which houses the former Hewlett-Packard’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 (HPQ) were down 2% at $11.96 in extended trading on Wednesday.

Revenue in the company’s personal systems business fell 9.9% in the second quarter ended April 30 from a year earlier, while revenue declined 15.8% 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.

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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.

The other company, Hewlett Packard Enterprise (HPE), announced on Tuesday that it would be spinning off and merging its struggling IT services business with Computer Sciences.