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HP Inc. Revenue Gets Surprise Lift From Computer Sales

November 22, 2016

HP, Inc. CEO DionHP, Inc. CEO Dion
HP, Inc. CEO Dion WeislerHP, Inc.

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.