In results released earlier this week, the manufacturer recorded total sales of $13.2bn (£10.4bn) for the three-month period to 31 July 2023, down 10% from the $14.6bn reported at the same stage a year ago.
The quarter showed overall improvement, however, with sales 2% higher than the $12.9bn figure achieved in Q2.
Revenue in the firm’s printing division was down 7% year-on-year, from $4.58bn to $4.26bn. It was down by 10% on the previous quarter’s figure of $4.74bn.
HP’s commercial printing revenue was $974m, down 6% year-on-year and 11% on the previous quarter.
Consumer printing sales were also on the slide, down 28% year-on-year to $521m, and also down 19% on the previous quarter.
Q3 sales of supplies dropped by 2% year-on-year to $2.77bn. This figure was also 8% lower than the previous quarter.
HP’s personal systems division saw sales drop by 11% year-on-year to $8.93bn, although this figure represented a 9% improvement on the previous quarter.
The company’s Q3 net earnings dropped from $1.12bn, or $1.08 per share, a year ago to $766m, or 76 cents per share.
Profits in its printing segment fell by 12.2% year-on-year, from $904m to $794m, while profits in personal systems also dropped by 12.2%, from $674m in Q3 last year to $592m.
HP’s overall profits dropped by 21% year-on-year, from $1.19bn to $936m, although Q3 represented a major improvement on the $587m it reported in Q2.
“We delivered a solid quarter of sequential growth, combining strong innovation with disciplined execution to gain profitable PC market share and achieve our non-GAAP EPS target,” said Enrique Lores, HP president and CEO.
“While we expect another quarter of sequential growth in Q4, the external environment has not improved as quickly as anticipated and we are moderating our expectations as a result.
“We remain confident in our ability to drive long-term growth and value creation as we focus on the things we can control and make continued progress against our Future Ready plan.”
HP Inc’s share price dropped following the release of the results on Tuesday (29 August), opening nearly 10% lower on Wednesday. It has rallied slightly since and closed at $29.71 yesterday (52-week high: $33.82, low: $24.10).
Separately, HP Indigo will be at the upcoming Labelexpo show in Brussels, where highlights will include the first European showcase for the HP Indigo V12 label press and the recently announced HP Indigo 200K Digital Press.
The focus at the show will be end-to-end solutions, and HP's Digital Pouch Factory.
In the US, HP will be showing its newest solvent ink, HP 2600, at packaging event Pack Expo in Las Vegas. It runs from 11-13 September, the same dates as Labelexpo.
The company said the ink is aimed at solving a variety of consumer and brand packaging and processing challenges “as well as addressing a broader industry push for more sustainable solutions” given that it has been designed with a goal to meet both current and future regulatory requirements.
HP’s Thermal Inkjet (TIJ) 108mm bulk printing tech for coding and marking on secondary packaging will also be featured on the show floor.
