HP Inc. reported quarterly revenue that fell short of Wall Street estimates on Wednesday, due to weaker-than-expected sales in both its personal computer and printing businesses, sending shares down 12 percent after hours.
HP is the hardware business of the former Hewlett-Packard Co., which split in 2015.
Sales in the personal systems business, which accounts for more than 60 percent of HP Inc’s total revenue, rose 2.3 percent to $9.66 billion in the first quarter, missing analysts’ average estimate of $9.74 billion, according to IBES data from Refinitiv.
HP, which bought Samsung Electronics’ printer business in 2017, said revenue from its printing business marginally fell to $5.06 billion, below analysts’ estimate of $5.19 billion.
Chief Executive Officer Dion Weisler cited increased economic uncertainties and price sensitivity among customers for weakness in the printing business.
“All commercial customers are purchasing supplies online, and while we have leading share online, it’s at a lower percentage than our share with traditional commercial resellers and in-store retailers,” Weisler said in a post-earnings call with analysts.
Palo Alto, California-based HP said it expects current-quarter profit, excluding items, to be 50 cents to 53 cents per share, while analysts were expecting 52 cents.
Net revenue rose 1.3 percent to $14.7 billion, missing estimates of $14.86 billion. Excluding items, the company earned 52 cents per share, which was in line with expectations.
The company lowered its 2019 profit forecast and now expects it in the range of $2 to $2.10 per share compared with the previous forecast of $2.04 to $2.14 per share.
HP, however, reiterated its 2019 adjusted profit forecast in the range of $2.12 to $2.22 per share. Analysts were projecting the company to earn $2.20 per share.