HP published quarterly sales that missed Wall Street’s forecasts and slashed its annual profit outlook due to declining demand for personal computers and printers.
The California-based firm’s adjusted earnings per share fell to $1.04, in line with analysts’ consensus, from the previous record of $1.08.
Besides, its sales revenue plunged to $14.66 billion, disappointing the market estimates of $15.69 billion and missing the precursory result of $16.49 billion.
Consequently, consumer sales in HP’s computer division tumbled by 20.00%, driven by tumbling demand for notebooks.
Furthermore, the revenue generated by the Personal Systems division, including PCs, slid by 3.00% to $10.10 billion in the period ended July 31.
The computer demand, which boomed early in the coronavirus pandemic, has dropped as schools reopened and economic sentiment soured.
Additionally, printing revenue shrank by 6.00% to $4.60 billion, down from the market forecasts of $4.80 billion, as it continues to be hurt by supply chain woes and backlogs.
In the full fiscal year, executives slashed their profits projection between $4.02 and $4.12 per share from $4.24 and $4.38 a share. This latest outlook is lower than Wall Street’s estimates of $4.30 apiece.
HPE reported bright earnings data
On the other hand, Hewlett Packard Enterprise (HPE) reported better than expected earnings as its EPS rose to $0.48 per share. It is above the market consensus of $0.47 and up from the prior result of $0.44.
Likewise, its sales revenue increased to $6.95 billion, higher than the $6.93 billion projections and rising from the former data of $6.71 billion.
Furthermore, the entity’s Intelligent Edge business unveiled revenue of $941.00 million, growing by 8.00% from the previous year.
Also, its Aruba Services revenue was up by double digits from the year-ago period. Besides, the Intelligent Edge as-a-Services ARR3 was up by over 60.005 from the year earlier.
Made out of HP’s split in 2015, HPE focuses on the operation of products and services, while the former concentrates on the printer and PC arm of the company.
