HP Shares Drop On Third-quarter Earnings, Sales Beat

By Max A. Cherney Markets MarketWatch Pulse

HP Inc. shares fell in the extended session Wednesday after the company's third-quarter sales beat Wall Street expectations. HP shares fell more than 3% to $18.21 after hours. The computer and printer manufacturer's net income shrank to $696 million, or 41 cents a share, compared to $783 million, or 45 cents a share, in the year-ago period. Adjusted earnings were 43 cents a share. Revenue increased 10% to $13.1 billion from $11.89 billion in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of 42 cents a share on revenue of $12.3 billion. Executives issued fourth-quarter adjusted earnings guidance of 42 cents to 45 cents per share. Analysts model fourth-quarter adjusted earnings of 44 cents a share on sales of $12.81 billion. HP stock has gained 28.7% year-to-date, while the S&P 500 index has gained 7.8%.

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