Palo Alto-based HP nose-dived on Wednesday, while Palo Alto-based Hewlett Packard Enterprise posted a solid rise after the two companies reported combined earnings results for the final time.
Analysts were spooked by HP s revelation of a sharp downturn in the company s printing business. After the split, HP retained the legacy computer hardware and printer business.
In contrast, Wall Street may see more upside in the Hewlett Packard Enterprise business because it sells cloud-based services to corporations and other big organizations.
HP plunged 13 percent on Wednesday. Hewlett Packard Enterprises rose 2 percent.
The combined results showed a 14 percent decline over a one-year period in the printing and persona computer systems business, which HP now controls.
In contrast, enterprise revenue rose 2 percent. That came despite a decline of 9 percent in enterprise services revenue over the one-year period. Hewlett Packard Enterprises now runs this business.
Some analysts downgraded HP s stock in the wake of the combined earnings report.
Shares of HP also were jolted after the computer hardware and printer company offered a sour outlook for fiscal 2016.
HP predicted that earnings per share, after one-time adjustments, would range from $1.59 to $1.69 a share. That was below Wall Street s expectations of $1.70 a share.
Hewlett Packard Enterprise believes earnings will range from 75 cents to 85 cents. Analysts have been predicting 74 cents a share for fiscal 2016.
Daily News photo
The post HP plunges, Hewlett Packard Enterprise rises, following earnings report appeared first on SiliconBeat.
