HP beats by $0.03, beats on revs; guides Q4 EPS below consensus
Reports Q3 (Jul) earnings of $0.48 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.45; revenues fell 3.8% year/year to $11.89 bln vs the $11.49 bln Capital IQ Consensus.
Personal Systems net revenue was flat year over year (up 2% in constant currency) with a 4.4% operating margin. Commercial net revenue decreased 3% and Consumer net revenue increased 8%. Total units were up 4% with Notebooks units up 12% and Desktops units down 6%.
Printing net revenue was down 14% year over year (down 10% in constant currency) with a 20.4% operating margin. Total hardware units were down 10% with Commercial hardware units down 2% and Consumer hardware units down 14%. Supplies revenue was down 18% (down 13% in constant currency).
Co issues downside guidance for Q4, sees EPS of $0.34-0.37, excluding non-recurring items, vs. $0.40 Capital IQ Consensus Estimate.
Lowers FY16 EPS to $1.59-1.62 from $1.59-1.65 vs. $1.61 consensus.
"Although the markets remain challenged, we have the innovation and executional rigor needed to continue to take profitable share and invest in the right opportunities to drive long-term success for the company."