By Yasin Ebrahim
Investing.com - HP on Wednesday reported weaker guidance and mixed second-quarter results as revenue missed expectations amid falling demand for printers and desktops.
HP shares lost 1.63% in after-hours trade following the report.
HP announced earnings per share of $0.51 on revenue of $12.47 billion. Analysts polled by Investing.com anticipated EPS of $0.47 on revenue of $13.06 billion. That compared with an EPS of $0.53 on revenue of $14.04 billion in the same period a year before. HP had reported EPS of $0.65 on revenue of $14.62 billion in the previous quarter.
Personal systems revenue was down 7% year over year and printing revenue was down 19% year over year.
“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," the company said.
HP Inc (NYSE:HPQ) shares are down 16.64% from the beginning of the year , still down 28.42% from its 52 week high of $23.93 set on February 25. They are under-performing the S&P 500 which is down 6.46% year to date.
The company guided fiscal third-quarter EPS in a range of $0.39 to $0.45. Analysts were expecting EPS of $0.5 and revenue of $13.59 billion in the upcoming quarter.
"For fiscal 2020, given the level of uncertainty around the duration of the pandemic, the timing and pace of economic recovery and the potential impact of a resurgence in cases, HP anticipates a much wider range of outcomes for the year. As a result, HP will not be providing an outlook for the fiscal year 2020," HP said.
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