After the close of the bell, technology stalwart Hewlett-Packard announced better than expected numbers in their Q3 earnings report. This comes after a relatively flat week on the public markets for the company.
Analysts expected an adjusted EPS of 44 cents on $11.44 billion in revenue. Instead, HP reported an EPS of $0.48 cents and revenue of $11.9 billion.
The EPS numbers reported beat HP’s internal guidance of $0.43 to $0.46 per share. Third-quarter net revenue is down 4 percent from Q3 2015.
As soon as the report dropped, HP stock shot up initially in after-hours trading, seemingly reversing a downward trend that began this afternoon just after 2 PM EST. Unfortunately it didn’t last long, and investors started pushing the price back down minutes later.
The company has struggled to find footing after splitting back in November of last year. The HP reporting earnings today sells printers and computers, whereas Hewlett Packard Enterprise services businesses.
HP Enterprise has a $36 billion dollar market cap while HP runs about a $24 billion dollar market cap. Both companies have seen stock price growth since January, but HPE growth at 43 percent significantly outpaces the 24 percent growth seen at HP.
The printer market specifically is a point of distress for traders, with HP seeing double digit revenue declines servicing the space in previous quarters. In the report, HP noted that its printing business is still struggling, but that its PC business is stabilizing.
“Printing net revenue was down 14% year over year with a 20.4% operating margin. Total hardware units were down 10% with Commercial hardware units down 2% and Consumer hardware units down 14%. Supplies revenue was down 18%.”
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We are updating this post with additional analysis from the HP earnings call.