Hewlett-Packard revenue falls in last report before split

(Reuters) – Hewlett-Packard Co, the tech pioneer that split into two separate companies this month, reported a fall in revenue for the fifth straight quarter, hurt by lower PC sales and a slump in demand from businesses.

The results are the last for Hewlett-Packard before HP Inc, housing the company’s printer and PC businesses, and Hewlett Packard Enterprise Co, holding its corporate hardware and services businesses, start to report separately.

Hewlett-Packard’s revenue fell 9.5 percent to $25.71 billion in the fourth-quarter ended Oct. 31.

Net income fell to $1.32 billion from $1.33 billion a year earlier. But on a per share basis, profit rose to 73 cents per share from 70 cents, based on fewer shares outstanding.

HPE’s shares were up 2.3 percent at $14 in extended trading on Tuesday, while those of HP Inc fell 4 percent to $14.

Revenue in HP’s personal computer and printer businesses fell about 14 percent.

Worldwide PC shipments declined 7.7 percent in the third quarter, despite the much-awaited release of Windows 10 in July, according to research firm Gartner.

In the company’s enterprise services division, revenue fell 9 percent, while revenue from its enterprise group rose 2 percent.

HPE, the faster growing of the two new companies, maintained its full-year adjusted profit forecast of $1.85-$1.95 per share, while HP Inc said it expected a full-year adjusted profit of $1.59-$1.69 per share.

Up to Tuesday’s close of $13.69, HPE shares had fallen 7 percent since their market debut on Nov. 2. In contrast, HP Inc’s shares, which closed at $14.64, had risen about 20 percent.

(Reporting by Abhirup Roy and Anya George Tharakan in Bengaluru; Editing by Anil D’Silva)