HP Inc. has announced earnings in the first quarter, ended on January 31, as an independent company on Wednesday. The earnings have met analysts' expectations except for revenues in printing and personal systems segments. Share prices of HP have wavered a little in after-hours trading following the announcement.
The Californian tech giant has posted fiscal first quarter adjusted earnings per share of $0.36 on $12.25 billion in revenue. Analysts have expected earnings per share of $0.36 on $12.2 billion in revenue, reports CNBC citing Thomson Reuters' consensus estimate as the source.
The American IT company's earnings from continuing operations have declined 16% during the first fiscal quarter ended in January 31. Meanwhile, revenue has fallen 12% from the same quarter of the previous year, according to a report published in The Wall Street Journal. The PC manufacturer globally holds the no. 2 position behind Lenovo Group. Its PC revenue has been declined 13% during the first quarter. Strong US dollar has appeared as a big factor for the first quarter results. The tech giant's total revenue has been slashed by only 5% on a constant currency basis. HP is composed of a set of former businesses of Hewlett-Packard. The company has been split into two separate publicly held companies during last November. Printers and PCs face a series of headwinds, which won't eradicate soon, cautions The Australian quoting Dion Weisler, chief executive of HP. Printing accounts for 80% of the company's profit. However, sales of both hardware and ink of printing portfolio have been hurt by changing habits of computer users and competition. Specially, products from Japan have gained a pricing edge due to currency shifts. HP has gained market share in PCs used by companies. But it has walked away from 'low calorie' sales deals due to generation of lesser profit from lower pricings. The American tech giant may return to growth by dint of its innovative products. The company has introduced its innovative product Elite X3 this week, as an emerging attempt. Elite X3 is a big screen smart phone which may be plugged into a cradle and connected to keyboard and display to act like a PC. HP has forecast for an adjusted earnings per share within $0.35 to $0.40 for the second quarter scheduled to be ended in April. However, the company hasn't projected on revenue. HP Enterprise, the other split arm of former Hewlett-Packard is scheduled to report its first quarter results on March 3.
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