HP Inc. Stock Dives Following Weak Quarterly Sales

By Jennifer BootonMarketWatch Pulse

Shares of HP Inc. tumbled 5% in after-hours trade Tuesday following Hewlett-Packard Co.'s fourth-quarter earnings report. Hewlett-Packard Co. reported earnings per share of 73 cents, compared with 70 cents in the year-earlier period. Excluding one-time items, the company reported earnings of 93 cents a share, versus the company's internal forecast range of between 92 cents and 98 cents. Revenue fell 9% from the same period last year to $25.7 billion. The results were impacted by a 14% year-over-year revenue decline in both printing and personal systems, which are now housed exclusively under HP Inc. Enterprise revenue, meanwhile, which is now housed under the newly spun-off Hewlett Packard Enterprise , climbed 2% year-over-year, despite a 9% drop in enterprise services revenue. For fiscal 2016, HP Inc. is calling for non-GAAP EPS between $1.59 and $1.69 a share, below the FactSet estimate of $1.70. Hewlett Packard Enterprise is forecasting earnings between 75 cents and 85 cents, above the consensus outlook of 74 cents. Shares of Hewlett Packard Enterprise rose 2.3% in after-hours trade.

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