Earnings

HP reports mixed quarter, falling PC and printing revenues

HP top line beat, bottom line miss
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HP top line beat, bottom line miss

HP Inc. reported on Wednesday that its quarterly adjusted earnings topped Wall Street estimates, but its revenues fell short of analyst expectations.

The company said it saw second-quarter adjusted earnings of 41 cents per share on net revenues of $11.59 billion. Analysts expect HP to post earnings of 38 cents per share on $11.72 billion in revenue for its fiscal 2016 second quarter, according to a Thomson Reuters consensus estimate.

Those results represented a roughly 11 percent decline in revenue and a 5 percent increase in earnings per share over the comparable year-ago period, HP said.

Shares in the company fell about 3 percent in after-hours trading after the results were released, but then moved into positive territory as investors digested the news.

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Looking ahead, the company said it was looking for adjusted third-quarter earnings between 37 cents and 40 cents per share. Wall Street had on average expected about 40 cents, according to Reuters.

HP also lowered the upper end of its full-year guidance: It said that it expected adjusted fiscal year earnings between $1.59 and $1.65 per share — it had previously said it was looking for $1.69 on the high side of its expectations.

Still, Wall Street had only on average expected full-year earnings of $1.59 per share, according to Reuters.

"This quarter we delivered strong results and solid progress towards our long term strategy," Dion Weisler, HP's president and CEO, said in a news release. "We achieved our operational objectives, unleashed truly amazing innovations, and grew in strategic areas of our business, despite tough market conditions. I'm confident in our ability to execute and remain committed to our plan for growth."

Within its individual segments, HP reported that its personal systems net revenue fell about 10 percent year-over-year to $6.99 billion. Wall Street had expected that segment to see $7.06 billion, according to StreetAccount. That discrepancy was attributable to desktop revenue of $2.4 billion compared to an expected $2.52 billion.

Still, HP said it outperformed the personal systems market to gain an overall 19.4 percent share. Within the commercial space, HP said it had achieved an all-time-high market-share of 24.6 percent.

For its printing business, HP said it saw $4.64 billion in net revenue. That compares to $4.74 billion anticipated by Wall Street, according to StreetAccount.

Revenues for every individual component of HP's personal systems and printing businesses — from notebooks and workstations to printing supplies and consumer hardware — fell on a year-over-year basis.

"I will not be completely satisfied with the company performance until we return to sustained growth," Weisler said on the company's earnings webcast.

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In November, the former Hewlett-Packard split into HP Inc. and Hewlett Packard Enterprise. The move separated the legacy hardware business from the enterprise computing segment.

This year, HPE's stock has climbed 17 percent, while HP Inc. shares have risen about 3 percent. The S&P 500 is up 2.2 percent in that time.

HPE shares got a boost Tuesday, as the company reported earnings that met expectations and announced it would spin off its enterprise services unit and merge it with Computer Sciences.

—CNBC's Jacob Pramuk contributed to this report.