HP Q1 on target, but 'tough quarters ahead'

The company's first quarter was in line with expectations even as printer and PC sales took a hit. The outlook is roughly on target, but CEO sees some tough quarters ahead.

HP Inc. delivered first quarter results that highlight ongoing turbulence in the PC and printer market and noted it has "some tough quarters ahead."

The company reported first quarter earnings of $700 million, or 36 cents a share, on revenue of $12.2 billion, down 12 percent from a year ago. Non-GAAP earnings for the quarter were also 36 cents a share.

Wall Street was expecting earnings of 36 cents a share on revenue of $12.2 billion.

As for the outlook, HP projected second quarter non-GAAP earnings between 35 cents a share and 40 cents a share. For fiscal 2016, HP projected non-GAAP earnings to be $1.59 a share to $1.69 a share. Wall Street was expecting earnings of of 39 cents a share for the second quarter and $1.60 a share for the full year

CEO Dion Weisler said the company has a "clear strategy" that is focused on innovation, execution and efficiency. However, Weisler said HP has some "tough quarters ahead."

Personal systems revenue fell 13 percent with consumer sales falling 16 percent. Commercial sales fell 11 percent. Printing revenue fell 17 percent from a year ago.

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