HP Inc. delivered better-than-expected third quarter earnings Wednesday, but the PC and printer maker narrowed its revenue guidance for the fiscal year.
Overall, the tech giant reported a net income of $843 million, or 49 cents per share (statement).
Non-GAAP earnings were 48 cents per share on revenue of $11.9 billion, down four percent year over year.
Wall Street was looking for earnings of 44 cents per share with $11.47 billion in revenue.
As for the outlook, HP once again revised its EPS projection for this fiscal year, which sent its shares falling around 5 percent in late trading. Last quarter HP projected non-GAAP earnings to be $1.59 a share to $1.65 a share. The company now expects a range of $1.59 to $1.62 per share.
For the current quarter, HP expects non-GAAP earnings between 34 cents a share and 37 cents a share. Wall Street is expecting Q4 earnings of at least 41 cents a share.
Looking across segments, it appears HP is still struggling to cope with the weakening PC and printer market, even though there are some signs of improvement.
Personal systems net revenue was flat and commercial sales fell 3 percent. Net sales from desktops and notebooks increased 8 percent and total number of units sold rose 4 percent. However, when looked at separately, only notebook units were up with a 12 increase, while desktop units decreased by 6 percent.
Printing net revenue was down 14 percent year over year and total hardware units dropped 10 percent. Commercial printers had the slightest revenue decline at 2 percent, while sales of consumer printers dropped 14 percent.
"Although the markets remain challenged, we have the innovation and executional rigor needed to continue to take profitable share and invest in the right opportunities to drive long-term success for the company," said HP CEO Dion Weisler.