HP Inc. (NYSE: HPQ) reported fiscal second-quarter financial results after the markets closed on Wednesday. The company said it had $0.41 in earnings per share (EPS) on $11.6 billion in revenue. This compares to consensus estimates from Thomson Reuters that called for $0.38 in EPS on $11.72 billion in revenue. In the same period of last year, HP posted $0.87 in EPS on $25.45 billion in revenue.
The Personal Systems segment reported net revenues decreasing 10% from last year (only 5% in constant currency) with a 3.5% operating margin. Commercial net revenue decreased 7% and consumer net revenue decreased 16%. Total units were down 9% with Notebooks units down 6% and Desktops units down 10%.
Separately, the Printing segment had net revenues decreasing 16% year over year (down 10% in constant currency) with a 17.3% operating margin. Total hardware units were down 16% with commercial hardware units down 12% and consumer hardware units down 18%. Supplies revenue was down 16% (down 10% in constant currency).
In terms of the outlook, the company expects to have EPS in the range of $0.37 to $0.40 for the fiscal third-quarter. While for the full year, HP expects to have EPS in the range of $1.59 to $1.65. There are consensus estimates that call for $0.41 in EPS in the coming quarter and $1.59 in EPS for the fiscal year.
Dion Weisler, HP’s President and CEO, commented:
This quarter we delivered strong results and solid progress towards our long term strategy. 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.
On the books, cash and cash equivalents totaled $4.64 at the end of the quarter compared to $7.58 at the end of the previous fiscal year.
Shares of HP closed Wednesday up 2.4% at $12.20, with a consensus analyst price target of $13.39 and a 52-week trading range of $8.91 to $15.72. Following the release of the earnings report, the stock was down 1.2% at $12.05 in the after-hours trading session.