HP Inc. (NYSE:HPQ) sank on Wednesday after the company that houses former Hewlett-Packard's legacy printer and PC business forecast adjusted profit for the first quarter below market expectations. The company is struggling with weak sales of PCs and printers.
On the other hand, Hewlett Packard Enterprise (NYSE:HPE) advanced after the company which holds the corporate hardware and services businesses maintained its adjusted profit forecast for the year.
HP was down 13% at $12.69, while HPE was up 2.3% at $14.01.
"Looking ahead, we expect the PC market to remain challenged for more quarters to come," HP Inc.'s chief executive officer Dion Weisler was quoted as saying on a conference call.
Hewlett-Packard ceased to be on November 1 when it split into two companies, HP Inc. and Hewlett Packard Enterprise.
PC sales have been shrinking sharply worldwide and the recent launch of Windows 10 has so far failed to reboot the industry.
Revenue in HP's personal computer and printer businesses fell about 14% in the fourth quarter ended October 31, pushing Hewlett-Packard's overall revenue down for the fifth straight quarter.
Revenue weakened as consumers shifting to mobile phones and moving away from the printers and personal computers.
HP Inc forecast adjusted profit of $0.33-0.38 per share for the quarter ending January, lagging behind analysts' average estimate of $0.42, according to Capital IQ.
The company also slashed its 2016 adjusted profit forecast to $1.59-$1.69 per share from $1.67-$1.77 per share.
Net income fell to $1.32bn from $1.33bn a year earlier. Revenue fell 9.5% to $25.71bn.