HP Matches Wall Street Targets For Q1, Misses On Q2 EPS View

By | February 24, 2016

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Personal computer and printer maker HP Inc. ( HPQ ) late Wednesday delivered in-line sales and earnings for its fiscal first quarter of 2016, but the midpoint of its EPS guidance for fiscal Q2 was below Wall Street’s target. HP stock rose a fraction in after-hours trading following the earnings news release. During the regular session Wednesday, HP climbed nearly 5% to 10.82. HP earned 36 cents a share excluding items on sales of $12.2 billion in the quarter ended Jan. 31. On a year-over-year basis, EPS and sales each dropped 12%. On a constant currency basis, factoring out foreign exchange impact, sales slid 5%. For the current quarter, HP expects non-GAAP earnings per share of 35 to 40 cents, or 37.5 cents at the midpoint. Analysts polled by Thomson Reuters had been modeling for HP to earn 39 cents a share ex items on sales of $11.94 billion in its fiscal second quarter. HP did not give a Q2 sales forecast. HP also reiterated its fiscal 2016 EPS guidance of $1.59 to $1.69 on a non-GAAP basis. Analysts have been targeting $1.60 EPS for the full year. PC and printer sales are mired in a prolonged slump. HP is the No. 2 maker of PCs worldwide with 19.9% market share by unit shipments in the fourth quarter, according to research firm IDC. Lenovo is No. 1 with 21.4% market share, IDC says. “We have a clear strategy that leverages our strengths, and we are focused on execution, taking cost out of the business and delivering innovations that will amaze our customers and partners,” HP CEO Dion Weisler said in a statement . “Although we have some tough quarters ahead, I am confident in the future.”   Scalper1 News

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