HP Inc (NYSE:HPQ) shares made gains in after-hours trading after the company managed to narrowly beat fiscal first-quarter earnings despite facing what CEO called industry wide headwinds.
The personal computing company posted non-GAAP diluted earnings of $0.75 per share, down 32% year-over-year from $1.10 but just above Street expectations of $0.74 per share. Revenue was $13.8 billion, down 19% from $17 billion and below analyst projections of $14.15 billion.
Despite the revenue miss, shares were up nearly 2.5% to $30.22.
“We delivered on our non-GAAP EPS target despite industry-wide headwinds, reflecting disciplined execution across our business,” Lores said in a statement. “The ‘Future Ready’ plan we announced last quarter is having an immediate impact, as we continue to reduce our costs while maintaining investments in long-term growth.”
The trouble, though, came from personal computer and other device sales. Personal systems (PS) net revenue was $9.2 billion, down 24% year over year. Consumer PS net revenue dropped 36%, and commercial PS net revenue decreased 18%.
Looking ahead, HP projects fiscal second quarter non-GAAP diluted net earnings per share to land between $0.73 and $0.83. For the year, the company reaffirmed its guidance range of $2.22 to $2.62.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel