HP Inc. off to a rough start after poor Q4 results
Shares tumble by 16.3% on Wednesday
While Hewlett-Packard Enterprise, the enterprise-focused business split off from what was Hewlett-Packard, had a good first month on Wall Street, things were much worse for HP Inc., the spun-out PC and printer business.
Shares tumbled this week after the company released results that showed a 14% fall in both PC and printer revenue for the fourth quarter. This is the worst performance recorded by the business units, and it had investors worried - shares fell by 16.3% on Wednesday.
Dion Weisler, CEO of HP Inc., was forced to admit that the printing business was a "much greater challenge" than the PC business, Reuters said. And while the PC business is hardly stellar, HP Inc. is facing strong competition from the likes of Canon and Epson when it comes to printing. Even in the printing supplies business, revenue fell 10% this quarter.
The problems this year were compounded by the effects of a strong dollar, which led HP Inc.'s yield per unit over the course of the year.
Meg Whitman, CEO of Hewlett-Packard Enterprise, tried to aid Weisler by saying that she expects the PC market to rebound a little over the next 18 months. However, she won't be worried after her company's shares rose 8.5% last week following the enterprise-focused company's earnings report.