HP boosts Q3 outlook

HP on Tuesday increased its outlook for the third quarter of fiscal 2016. Executives on Tuesday also announced changes the company's printing sales model, aimed at creating more stability and predictability in sales.

HP now estimates non-GAAP net earnings per share from continuing operations to be in the range of 43 cents to 46 cents. When it reported its second quarter earnings, HP said it anticipated non-GAAP earnings between 37 cents a share and 40 cents a share.

For the full year fiscal 2016, HP reaffirmed that non-GAAP EPS are expected to be in the range of $1.59 to $1.65.

On a conference call, HP executives said they are investing the proceeds from its recent software divestment into the printing business to reduce supplies channel inventory and increase marketing.

"Our increased focus on our two core business segments has allowed us to make the right decisions for the long term," HP CEO Dion Weisler said. Its sales, he said, will move from a pull model to a push model, with less emphasis on promotions and deals, allowing for "a more stable and consistent value proposition."