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Hewlett Packard tumbles 7% after disappointing fourth quarter revenues

Published 11/24/2015, 06:39 PM
Updated 11/24/2015, 06:42 PM
Hewlett Packard's struggles continued in the fourth quarter when its revenue fell by 9%

Investing.com -- Shares in HP Inc (N:HPQ) tumbled more than 7% in after-hours trading on Tuesday, after the company reported disappointing results for its fourth quarter of Fiscal Year 2015.

Over the company's fourth quarter, which ended on October 31, Hewlett Packard finished with revenues of $25.7 billion for the three-month period, a decline of 9% on a year-over-year basis. It came as the Silicon Valley-based company suffered 14% declines in both its printing and personal sales segments.

For the quarter, Hewlett Packard reported earnings per share of 0.73 and operating company net cash of $3.1 billion, a sequential improvement of $1.2 billion. Analysts expected the company to report fourth quarter earnings per share of 0.70. When the effects of one-time items were discounted, Hewlett Packard reported non-GAAP diluted earnings per share of 0.93, in line with its projected range between 0.92 and 0.98.

The report marked the company's first since it spun off its enterprise technology infrastructure at the start of this month. The new company, Hewlett Packard Enterprise, consists of HP's software, services and financing divisions. Hewlett Packard's fourth quarter results include the performance of Hewlett Packard Enterprise.

"In these challenging markets, we are taking decisive actions that will protect our core business which generates the majority of our cash flows," said Dion Weisler, president and chief executive officer, HP Inc. "We firmly believe in our strategy and, given our scale, innovation, channel reach and brand, we are well positioned to gain profitable share in the markets where we choose to play."

Moving forward, Hewlett Packard expects to report GAAP earnings per share between 1.59 and 1.69, slightly below analysts' forecasts of 1.70. Hewlett Packard Enterprise expects to attain per share earnings between 0.75 and 0.85, above forecasts of 0.74.

Shares in Hewlett Packard plunged 1.04 or 7.10% to 13.61 in after-hours trading.

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