NEW YORK (TheStreet) -- HP (HPQ) - Get Report stock is falling 1.64% to $12 in after-hours trading on Wednesday after the computer hardware company set its fiscal 2016 third quarter earnings guidance below estimates.
For the third quarter, the Palo Alto, CA-based company expects to report earnings of 37 cents to 40 cents per share, while analysts were estimating earnings of 41 cents per share.
Additionally, HP delivered mixed financial results for the fiscal 2016 second quarter with better-than-expected earnings, but revenue that fell short of estimates.
Earnings of 41 cents per share for the quarter ended April 30 came in above estimates of 38 cents per share. Revenue declined 11% year over year to $11.59 billion, missing projections of $11.72 billion.
The drop in revenue was driven by a 10% decline in personal systems revenue with total units down 9%. A 16% decline in printing revenue also pressured total revenue as hardware units fell 16%.
Separately, HP has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's expanding profit margins, which offsets feeble earnings per share growth, deteriorating net income and weak operating cash flow.
You can view the full analysis from the report here: HPQ
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