"Executional rigour" fails to save HP shares from after-hours plunge

 
Hayley Kirton
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Earnings per share may have picked up, but revenues were still down (Source: Getty)

HP thinks it has the laser vision needed to continue printing out profits, as the technology giant revealed today its earnings per share had beaten its previously stated outlook.

The company reported diluted net earnings per share from continuing operations of $0.49 for its third quarter of the year, safely above its previously provided outlook of $0.40 to $0.43 per share and a 26 per cent increase compared with the prior year's $0.39.

Net earnings from continuing operations had improved by 20 per cent to $843m (£637.1m) from $700m.

However, HP also announced net revenues had slid to $11.9bn for the three months ending in July, down four per cent on $12.4bn the year before, as demand for printers continued to dwindle.

During the period, the company returned $269m to shareholders through share repurchases and dividends.

"In quarter three, we delivered on our financial commitments and continued to make solid progress in executing against our core, growth and future strategic framework,” said Dion Weisler, president and chief executive of HP. "Although the markets remain challenged, we have the innovation and executional rigour needed to continue to take profitable share and invest in the right opportunities to drive long-term success for the company."

However, shareholders were not impressed, as share price plunged 5.1 per cent in after-hours trading to $13.67.

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