The world's top personal computer maker on Tuesday reported a net profit of $1.7 billion, or 70 cents a share, in the fiscal second quarter ended April 30, down from $2.1 billion, or 80 cents a share, a year ago.
Chief Executive Mark Hurd told Reuters that earnings came in a bit better than expected. Yet in terms of demand, Hurd said we're expecting roughly more of the same.
Excluding certain restructuring and acquisition-related items, HP posted a profit of 86 cents a share, matching analysts' average forecast according to Reuters Estimates.
Revenue slipped 3 percent to $27.4 billion, a whisker off Wall Street's forecast of $27.5 billion.
For the current quarter, HP forecast earnings excluding items of 88 cents to 90 cents a share, with revenue flat to down 2 percent sequentially.
Wall Street is forecasting a profit of 89 cents a share on revenue of $27.5 billion.
In February, HP cut its full-year outlook after quarterly revenue missed expectations.
For fiscal 2009, the company still expects an adjusted profit of $3.76 to $3.88 a share, but now expects revenue to fall 4 to 5 percent. It had previously forecast revenue to fall 2 to 5 percent.
HP is also the second-largest IT services company and No. 2 maker of servers, trailing International Business Machines Corp
The company's PC business, which is less dependent on corporate customers than rival and No. 2 player Dell Inc's
Even as global PC shipments declined, HP managed to increase shipments by 2.9 percent in the first calendar quarter, according to research group IDC, and boost its market share to 20.5 percent.
Some industry executives, including from Intel Corp
But this week, executives from other IT players including microchip maker Advanced Micro Devices
Shares of Palo Alto, California-based HP fell about 5 percent to $34.72 from a regular close of $36.58 on the New York Stock Exchange.
(Reporting by Gabriel Madway; Editing by Edwin Chan, Richard Chang)