Printer maker HP Inc. announced the company beat analysts second-quarter earnings target of 51 cents per share ($12.47 billion – above the expected 45 cents per share – but lower sales sent HPQ stock lower. On a year-over-year basis, HP earnings dipped 4% while sales declined 11%.
Printing net revenue was down 19% year over year (down 18% in constant currency) with a 13.2% operating margin. Total hardware units were down 23% with Commercial hardware units down 25% and Consumer hardware units down 22%. Supplies net revenue was down 15% (down 15% in constant currency).
“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 Enrique Lores, HP’s President and CEO. “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.”
In after-hours trading on the stock market, HPQ stock fell 4.5%, near 16.35.