Hewlett-Packard (HPQ) has seen its shares fall by more than 2 percent as third-quarter revenue and fourth-quarter profit guidance did not match the expectations of Wall Street. HP commented it earned 88 cents per share on revenue of $25.3 billion. Analysts surveyed by Thomson Reuters had called for HP to post earnings of 85 cents per share on revenue of $25.4 billion. Net profits, at $854 million, fell 13 percent year-on-year. Revenue fell 8 percent.
HP’s guidance for the fourth quarter — its final as a single company — also fell short of expectations. HP said it expects to earn between 92 cents and 98 cents a share, versus the $1 analysts had expected. The company also tightened its outlook for the full year, saying it expects to earn between $3.59 and $3.65 a share, versus its previously given range of $3.53 to $3.73 per share.
Demand for personal computer has fallen by a 13 percent from a year ago to $7.5 billion, and unit sales fell by 11 percent. Furthermore, printing revenue fell by 9 percent to $5.1 billion. Total revenue for the combine personal systems and printing units — which will in a few months become HP Inc. was $12.6 billion, down by 11.5 percent from the year-ago period. Adding more misery to for the company is the fall in software sales which fell to $900 million down by 6 percent.
Hewlett-Packard has announced plans to split the PC and printers business from its enterprise products and services business. This split is seen an underlining reason for the poor earning report. Yet, CEO Meg Whitman tried to remain optimistic saying “I don’t think the strategy we’ve put in place will change much, after we separate”.