PC and printer maker HP Inc. unveiled its first quarter results on Monday, and the report is best described as a mix of bad and good. The company saw declining sales in the Q1 of 2023 but also managed to beat the earnings estimates.
Compared to the same period in 2022, HP saw an 18.8% dip in sales across all of its divisions. This included consumer PC sales going down 36%, commercial PC sales declining 18%, and printer sales taking a 5% hit.
According to the report, HP recorded $13.8 billion in sales, coming short of Wall Street estimates of $14.15 billion. Personal Systems net revenue came at $9.2 billion, down 24% year over year and below the $9.65 billion estimated. Printing net revenue came at $4.6 billion, narrowly beating the $4.49 billion that Wall Street expected.
Speaking about the declining sales, HP CEO Enrique Lores said that they are “driven by macroeconomy.”
“I think the decline of sales is really driven by the situation that we see in the market driven by the macroeconomy,” Lores told Yahoo Finance.
Lores expects that sales numbers will pick up in the second part of the year when the company expects increased demand for its products.
On the other hand, HP recorded $0.75 in diluted EPS, beating the expected mark of $0.74. The company predicts a similar range for Q2, saying that it expects diluted EPS to be in the range of $0.73 to $0.83.
The investors took the news about HP’s declining sales pretty well, with the company’s stock seeing positive movement in after-hours trading. HP shares climbed 2.6% after closing at $29.52 per share on Tuesday.