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HP Inc (NYSE:HPQ) fell 8.5% in premarket Wednesday trade following the report.
HP reported adjusted EPS of $0.86 on revenue of $13.2 billion. Analysts polled by Investing.com anticipated adjusted EPS of $0.86 on revenue of $13.38B.
In its personal systems unit, which includes personal computers and accounts for the majority of growth, revenue fell 11% to $8.9B in Q3 year over year.
Printing net revenue fell 7% to $4.3B, led partly by supply-chain issues.
Looking ahead, the company forecast adjusted fourth-quarter EPS of $0.85 to $0.97, compared with Wall Street estimates for EPS of $0.95.
For 2023, adjusted EPS was guided in a range of $3.23 to $3.35, below estimates of $3.37.
Bernstein analysts said the report was disappointing.
“Certainly, the case can be made that HPQ is at or near bottom, with PC revenues likely to improve going forward. That said, weak printer shipments may impact supplies growth in the medium term, HPQ’s margins remain above pre-pandemic levels, and we worry about the structural health of the printing business and its ability to grow over time,” they said.
“Moreover, while HPQ’s valuation is inexpensive at ~9.5x our FY 23 EPS and in line with its history, it is more expensive than HPE, which is less structurally challenged.”
Several other HP analysts lowered their price targets on the stock following the FQ3 report.
(Additional reporting by Senad Karaahmetovic)
