Troubled technology company Hewlett-Packard reported its third-quarter earnings after the close of trading on Wednesday. The company has faced a variety of serious issues over the last year, including a declining market for desktop computers.
Hewlett-Packard generated $27.2 billion in revenue during the third quarter, failing to impress investors. The company earned $29.7 billion during the same time period last year, indicating a serious decline in much of HP’s core business.
As the world’s largest personal computer manufacturer, HP has been hit hard by the declining sales of personal computers. With tablets and smartphones replacing PCs, many former customers have shifted their spending to other technology firms.
Other concerns for HP include a decline in the company’s share of the home printer market. Investors have previously branded the company’s printer line as its ‘crown jewel’ – the company’s printer business saw its sales drop by four percent this year.
CEO Meg Whitman informed investors that revenue growth during the next twelve months is unlikely, as HP takes steps to return to a point of financial health and put its core business back on track.
One of the primary reasons for HP’s somewhat pessimistic revenue forecast is slow PC sales, which have historically been the company’s primary earner. Meg Whitman believes it will take some time for the company to revise and adjust its focus.
Other issues include slow sales of HP’s enterprise services, which make up a major share of the company’s revenue. The company’s earnings form enterprise services are ‘more slowly than anticipated,’ putting it in a difficult long-term position.
HP’s stock fell more than 12 percent during the investor conference and its fallout, putting the company in a difficult position going forward. HP has announced some interesting staffing changes related to its poor performance and future outlook.
