HP, the computer and printer maker, reported a decline in revenue for the latest quarter due to weak spending from both consumer and commercial customers. The company’s earnings for the third quarter, which ended on July 31, were $766 million, or 76 cents a share, compared to $1.12 billion, or $1.08 a share, in the same period last year. Adjusted earnings were in line with analysts’ expectations at 86 cents a share.
Revenue dropped nearly 10% to $13.2 billion from $14.65 billion, falling short of analysts’ projections of $13.38 billion. Personal systems revenue experienced an 11% decline year over year, reaching $8.93 billion, while print revenue saw a 7% decrease to $4.26 billion during the same period.
In an interview, Chief Executive Enrique Lores commented on the pricing recovery that was expected, stating that it may not happen as much as anticipated. Lores also noted that inventories across the industry remain high, creating further pricing pressure.
Regarding the printing business, Lores mentioned that the slowdown in demand in the home segment had a significant impact on the quarter’s results. Additionally, HP has observed enterprises being more cautious with their investments, leading to an impact on the industrial side of the printing business. However, the office segment remained flat year over year.
Overall, HP’s latest quarter results reflect the challenges faced by the company due to subdued spending and pricing pressures in the market.