HP Slides as PC Sales Slump

Tickers in this article: HPQ

NEW YORK (TheStreet) -- HP shares slid 4.26% to $24.30 in extended trading after reporting its third-quarter results, weighed down by the pressures of a tough PC environment, noting the 2014 environment is likely to get worse.

The Palo Alto, Calif.-based firm reported revenue of $27.2 billion, down from $29.7 billion in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for sales of $27.29 billion.

Excluding items, HP earned 86 cents a share, down from $1 a share in the same period last year, and in line with analysts' expectation.

For the full year, HP expects earnings, excluding items, of $3.53 to $3.57 a share. Wall Street analysts are predicting $3.57 a share.

The company's Personal Systems revenue was down 11% year over year, while Printing revenue fell 4% over the same period. Revenue from the firm's Enterprise Group tumbled 9%.

HP is in the throes of a major restructuring effort, led by CEO Meg Whitman, who reiterated her desire to turn the firm's fortunes around.

"I remain confident that we are making progress in our turnaround," she said, in a statement. "We are already seeing significant improvement in our operations, we are successfully rebuilding our balance sheet, our cost structure is more closely aligned with our revenue and we have reignited innovation at HP, with a focus on the customer."

HP also announced changes to its leadership team, with COO Bill Veghte becoming executive vice president and general manager of the company's Enterprise Group. Dave Donatelli, who previously led the group, will take on a new role focused on identifying early-stage technologies, according to HP.

HP also combined its Marketing and Communications organizations under the leadership of Chief Communications Officer Henry Gomez.

--Written by James Rogers in New York.

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