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Hewlett-Packard’s Revenue Falls due to Sluggish PC Sales

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PC and Printing segments: Revenues fell in fiscal 2Q16

In November 2015, Hewlett-Packard (HPQ) and Hewlett-Packard Enterprise (HPE) became separate companies. Revenues from Hewlett-Packard’s legacy Printing and PC (personal computer) segments fell due to a contraction in the worldwide PC industry.

The company’s Personal Systems PC Group reported revenue of $7 billion in fiscal 2Q16, a fall of 10% YoY (year-over-year). Its Printing segment reported revenue of $4.6 billion in fiscal 2Q16 compared to $5.4 billion in fiscal 2Q15.

Desktop sales for HP fell by 13% YoY, while notebook sales fell by 8% YoY in fiscal 2Q16.

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Revenue fell 12% YoY

Hewlett-Packard recently announced its fiscal 2Q16 results. It reported revenue of $11.6 billion, an 11% fall YoY compared to $13 billion in fiscal 2Q15. The company’s revenue fell 5% YoY on a constant currency basis.

A strong dollar (UUP) also impacted the earnings of other tech companies such as Apple (AAPL), Hewlett-Packard Enterprise, and IBM (IBM). Non-GAAP (generally accepted accounting principles) diluted EPS (earnings per share) from continuing operations was $0.41, higher than the previously estimated guidance of $0.35–$0.40 per share.

Hewlett-Packard’s fiscal 1Q16 GAAP diluted EPS was $0.38, within the guidance of $0.33–$0.38 per share. In fiscal 2Q16, it returned $518 million to its shareholders in the form of dividends and share repurchases.

HP’s net income for fiscal 2Q16 fell by 38% YoY to $692 million from $1.0 billion in fiscal 2Q15.

In the next part of this series, we’ll take a look at Hewlett-Packard’s supplies revenue.

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