HP profit falls 44 per cent amid weak PC sales

Sales of HP printers and PCs both declined, though its services revenue was up a fraction

Hewlett-Packard's profit dipped sharply in the first quarter as consumers slowed spending on its PCs and printers, HP announced Wednesday.

Revenue from HP's massive Personal Systems Group, which sells PCs and workstations, declined 15 per cent from last year to $US8.9 billion, HP said. Sales to consumers dropped by a quarter from last year, while sales of business PCs slid 15 per cent.

HP's Imaging and Printing Group also fared poorly. Revenue was down 7 per cent to $6.3 billion, HP said, with sales to consumers hit hardest.

HP is trying to reinvigorate itself after a difficult year in which it said it might spin off its PC division and then changed its mind, and in which it made an ill-fated foray into the tablet market, only to give up on it some months later.

HP met its own profit goals for the quarter, President and CEO Meg Whitman said in a statement, and is "taking the necessary steps to improve execution."

Whitman took the helm of HP last September after the board ousted former CEO Leo Apotheker, who lasted in the job less than a year. This was HP's first full quarter under the former eBay chief.

Total revenue for the quarter, ended January 31, was $US30 billion, down 7 per cent from last year, HP said. Net profit was $US1.5 billion, down 44 per cent, or earnings per share of $US0.73.

Before one-time charges, HP's earnings would have been $US0.92 per share, better than the $US0.87 analysts had been expecting, according to a poll by Thomson Reuters, and in line with HP's earlier guidance.

HP's other big division, its services group, grew revenue just 1 per cent year-over-year to $US8.6 billion. Revenue from enterprise storage and servers fell 10 per cent, while revenue from software grew 10 per cent.

For the second quarter under way, HP expects earnings before one-time items of $US0.88 to $US0.91 per share, it said, slightly below the analyst forecast. It left its target for the full year unchanged, expecting at least $US4 per share.

James Niccolai covers data centers and general technology news for IDG News Service. Follow James on Twitter at @jniccolai. James's e-mail address is james_niccolai@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?