HP Inc. (HPQ) has reported an 11.13 percent fall in profit for the quarter ended Apr. 30, 2017. The company has earned $559 million, or $0.33 a share in the quarter, compared with $629 million, or $0.36 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $685 million, or $0.40 a share compared with $702 million or $0.41 a share, a year ago.
Revenue during the quarter grew 6.88 percent to $12,385 million from $11,588 million in the previous year period. Gross margin for the quarter contracted 18 basis points over the previous year period to 19.24 percent. Total expenses were 93.40 percent of quarterly revenues, up from 92.74 percent for the same period last year. That has resulted in a contraction of 65 basis points in operating margin to 6.60 percent.
Operating income for the quarter was $818 million, compared with $841 million in the previous year period.
"This was a breakthrough quarter for HP, and marks the first time both Personal Systems and Print have grown in the same quarter since 2010. We're delivering solid performance across our portfolio, in all regions, and on key financial metrics," said Dion Weisler, president and chief executive officer, HP Inc. "Our team is taking profitable share, out-executing our competitors and delivering some of the best innovation in HP's history. It's clear our reinvention is paying off."
For the third-quarter2017, HP Inc. forecasts diluted earnings per share from continuing operations to be in the range of $0.36 to $0.40. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.40 to $0.43
For financial year 2017, HP Inc. forecasts diluted earnings per share from continuing operations to be in the range of $1.42 to $1.52. The company forecasts diluted earnings per share to be in the range of $1.59 to $1.66 on adjusted basis.
Operating cash flow declines
HP Inc. has generated cash of $1,222 million from operating activities during the first half, down 17.26 percent or $255 million, when compared with the last year period.
The company has spent $241 million cash to meet investing activities during the first six months as against cash outgo of $255 million in the last year period.
The company has spent $1,046 million cash to carry out financing activities during the first six months as against cash outgo of $14,019 million in the last year period.
Cash and cash equivalents stood at stood at $6,223 million as at Apr. 30, 2017.
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