HP Inc. (HP, Financial) and Hewlett Packard Enterprise (HPE, Financial) separated in the final months of 2015 forming different technology companies with a different focus for each. On Aug. 24, HP Inc. reported its third quarter 2016 earnings results. HP Enterprise is scheduled to report earnings on Sept. 7.
Since the separation, HP Inc. has gained 4.05% closing at $14.39 on Aug. 26. The HP Inc. business is focused on printing and personal systems, which encompasses commercial printers, consumer printers, printing supplies, notebook computers and desktop computers.
In the third quarter HP Inc. reported total revenue of $11.90 billion, beating estimates by $430.0 million. EPS were 48 cents, beating estimates by 4 cents.
Revenue for the quarter was down 3.7% from the prior-year quarter. Personal system sales were steady, matching revenue from the third quarter of 2015. Printing revenue, however, was the main factor causing the quarter’s comparable sales decrease. Revenue from printing was down 14% from the comparable quarter.
Despite the lower revenue, earnings for HP Inc. in the third quarter went up. Total segment earnings increased by 10% from the comparable quarter. Earnings from personal systems increased 58%, while earnings from printing gained 1%.
Business management cost reductions helped the firm to report adjusted EPS of 48 cents, which was an increase from 35 cents in the comparable quarter.
In a report from Bloomberg following the company’s earnings announcement, market specialists discussed the company’s results and outlook.
Disclosure: I do not own any shares of any stocks included in this article.
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