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HP Falls on Mixed Quarter, Weak Q3 Earnings Guidance

HP was able to top analyst earnings estimates, but missed on revenue and guidance for the current quarter.

Shares of HP Inc  (HPQ) - Get Report dropped more than 3% Wednesday after-hours after the company reported fiscal second quarter results amid the coronavirus pandemic. 

The company reported quarterly earnings of 51 cents per share on revenue of $12.5 billion, an 11.2% decline from the year ago period. Analysts were expecting the company to report earnings of 45 cents per share on revenue of $12.85 billion. 

The company also issued fiscal third quarter earnings guidance between 39 cents and and 45 cents per share. Analysts are expecting the company to report earnings of 49 cents per share. 

“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," said CEO Enrique Lores. 

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This is the first earnings release for HP since Xerox  (XRX) - Get Report dropped its hostile takeover bid for HP in late March. 

The proposed takeover had involved a $30 billion tender offer and a bid to seize control of HP's board, The Wall Street Journal first reported.

But the coronavirus pandemic and resulting market turmoil derailed the debt-heavy merger, Xerox confirmed. Xerox initiated the takeover bid late last year.

In the intervening months, the two firms went back and forth acrimoniously on terms of the deal prior to the pandemic triggering widespread economic turmoil in the U.S. and worldwide.

HP shares were falling 3.62% to $16.50 in after hours trading Wednesday.