Earnings

HP Inc drops nearly 7 percent after profit forecast disappoints

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 shed more than 6 percent on Wednesday.

HP Inc said on Tuesday 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 percent in the fourth quarter, from a year earlier.

To beef up its fading printer business, HP in September said it would buy Samsung's 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.

The company's net revenue rose 2 percent to $12.51 billion, above the average analyst estimate of $11.9 billion.

Meanwhile, Hewlett Packard Enterprise, 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.

Shares of HPE gained nearly 3 percent on Wednesday.