HP delivers mixed Q2 results, printer sales down 19%

HP said personal systems net revenue was down 7% from a year ago to $8.3 billion.

HP delivered mixed second quarter financial results on Wednesday as unit sales declined in both the personal systems and printer segments.

The company reported fiscal second quarter earnings of $1.4 billion, or 53 cents a share, on revenue of $12.5 billion, down 11.2% from the same period last year. Non-GAAP earnings for the quarter were 51 cents a share.

Wall Street was expecting HP to report second quarter non-GAAP earnings of 45 cents a share on revenue of $12.85 billion.

Broken out by unit, HP said personal systems net revenue was down 7% from a year ago to $8.3 billion. Of that, notebooks revenue was flat at $5.98 billion and desktops revenue was down 18% to $2.4 billion. Printing revenue was down 19% from a year ago to $4.15 billion. Supplies revenue in the second quarter was down 15% to $2.8 billion. 

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"The strength of HP's diversified portfolio, go-to-market capabilities and balance sheet position us well to navigate macroeconomic challenges and drive long-term value creation," said HP CEO Enrique Lores. "We are seeing strong demand from our customers in notebook PC orders and Instant Ink subscriptions, as well as growing interest in 3D printing and digital manufacturing in key verticals such as healthcare. The current environment will be a catalyst for transformation and innovation across HP."

As for the outlook, HP is projecting non-GAAP earnings of 39 cents a share to 45 cents a share. Analysts are expecting earnings of 49 cents per share on revenue of $13.27 billion. HP's shares were down nearly 3% after hours.