HP Inc. Falls Despite Earnings Beat, Outlook Disappoints

HP Inc. , reported better-than-expected quarterly earnings Wednesday afternoon, but the company's stock still declined in late trading. The PC and printer-focused arm of Hewlett-Packard, which split into HP Inc. and Hewlett Packard Enterprise Co. last year, reported net profit of $783 million, or 46 cents a share, on sales of $11.89 billion. After adjusting for discontinued operations, restructuring charges and other effects, HP claimed earnings of 48 cents a share. HP was expected to post adjusted earnings of 44 cents a share on sales of $11.46 billion, according to analysts polled by FactSet. HP shares fell as the company's outlook for the fiscal fourth quarter came up short: HP predicted adjusted earnings of 34 to 37 cents a share, while analysts on average expect profit of 41 cents a share, according to FactSet. HP stock, which closed with a decline of 1.2% at $14.40, dropped under $14 in late trading, losing about 4%.