HP Inc. (NYSE: HPQ) released its most recent quarterly results after the markets closed on Thursday, along with a huge update to its executive leadership. With all this commotion, investors sent shares lower as a result.
The firm said that it had $0.58 in earnings per share (EPS) and $14.6 billion in revenue, which compared with consensus estimates of $0.55 in EPS and $14.6 billion in revenue. The fiscal third quarter of last year reportedly had EPS of $0.52 on $14.6 billion in revenue.
In terms of its segments, HP reported as follows:
- Personal Systems net revenue was up 3% year over year (up 6% in constant currency) with a 5.6% operating margin. Commercial net revenue increased 10% and Consumer net revenue decreased 11%. Total units were up 5% with Notebooks units up 2% and Desktops units up 11%.
- Printing net revenue was down 5% year over year (down 5% in constant currency) with a 15.6% operating margin. Total hardware units were down 9% with Commercial hardware units down 4% and Consumer hardware units down 10%. Supplies net revenue was down 7% (down 7% in constant currency).
Looking ahead to the fiscal fourth quarter, the firm expects to see EPS in the range of $0.55 to $0.59. The consensus estimates call for $0.58 in EPS and $15.4 billion in revenue for the quarter.
As for the change in executive leadership, the board of directors has appointed Enrique Lores as president and chief executive officer of HP effective November 1, 2019. Dion Weisler will step down from this role while remaining a director on the company’s board.
Weisler’s decision to step down at this time is due to a family health matter and he will be returning home to Australia. He will work with Lores to ensure a seamless transition and will remain at the company through January 2020.
Shares of HP traded early Friday at $17.77, or down more than 6%, in a new 52-week range of $17.44 to $27.08. The consensus price target is $22.77.