HP share price rises despite revenue dip in first results since spin off from Hewlett Packard Enterprise
HP reported a 12 per cent decline in revenue during the first quarter of 2016, with sales dropping to $12.2bn (£8.75bn) from $13.9bn in the same three months of 2015, as demand for PCs and printers fell away.
Shares in the company rose by 1.3 per cent in after hours trading.
HP is the legacy hardware business that was formerly part of Hewlett-Packard Enterprise. These are HP's first results since spinning off into a separate entity.
The company reported a 13 per cent dip in personal systems revenue, with notebooks units down eight per cent and desktops units down 13 per cent, while printing net revenue was down 17 per cent. Total hardware units were down 20 per cent with commercial hardware units down 15 per cent and consumer hardware units down 23 per cent.
Earnings per share (EPS) was down to $0.36 from $0.41, which tied in with analysts' expectations. In the next quarter, HP estimates that EPS will be in the range of $0.35 to $0.40.
"We have a clear strategy that leverages our strengths, and we are focused on execution, taking cost out of the business and delivering innovations that will amaze our customers and partners," said Dion Weisler, HP's president and chief executive. "Although we have some tough quarters ahead, I am confident in the future."