Now operating as two separate entities – HP and Hewlett Packard Enterprise – this quarter’s financial report was the last single entity report to be issued by HP, and it certainly doesn’t spell good times ahead for either entity.
Posted last night, the HP earnings report has shown, yet again, that its revenues are in decline, with it generating revenue of $25.7bn for the quarter, marking a 9pc decline on the same time last year.
This has been paired with the fact that the single entity’s share price is now $0.93 per share, significantly behind what the Wall Street market analysts had predicted at $0.97 per share and revenues of $26.36bn, according to CNBC.
This makes it the fifth straight quarter for the company posting lower revenues as we hear time and time again about the decline of PC sales worldwide in favour of mobile devices and pressure from Apple.
Last September, the joint company, referred to as HP Inc, announced that the splitting of the companies was to see the loss of 30,000 staff worldwide as part of further cost-cutting measures.
HP originally announced that it was to split the company in two to help ease its slumping revenues, with HP being made responsible for producing its PCs and printers, while Hewlett Packard Enterprise would help build its software, services and commercial systems.
Operating as such since November, the first quarter of next year will be the first time that the two companies will report as separate businesses, but going by this earnings report, there’s little reason for optimism, with HP’s stock now decreasing by 5pc and Hewlett Packard Enterprise by 3pc.
As for what the companies are hoping for next year, their forecasts appear to actually be lower than market analysts’ predictions, with HP Inc suggesting a share price of between $0.33 and $0.38, while analysts predict $0.42.
“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 CEO of 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.”
HP ball image via David/Flickr