Printing segment revenue fell 16% YoY
Hewlett-Packard’s (HPQ) revenue from its Printing segment fell 16% YoY (year-over-year) to $4.6 billion in fiscal 2Q16. Operating profit from this segment was $801 million, or 17.3% of revenue. Supplies constituted 67% of revenues in the Printing segment, whereas commercial hardware and consumer hardware accounted for 26% and 7% of revenue, respectively.
Supplies revenue fell 16% YoY—10% YoY on a constant currency basis—in fiscal 2Q16. Total hardware units fell 16% YoY with commercial hardware units falling 12% and consumer hardware units falling 18% YoY in fiscal 2Q16.
Hewlett-Packard expects the trajectory of the revenue from its Supplies subsegment to stabilize by 2017. The average selling price for this business rose quarter-over-quarter on a constant currency basis.
The company also observed constant currency growth in its Graphics subsegment for the 11th consecutive quarter, and it gained market share in the Design and Large Format Industrial Printers subsegments.
Hewlett-Packard dominates the hardcopy peripherals market
According to the International Data Corporation, Hewlett-Packard continues to be a market leader in the worldwide hardcore peripherals market, with a share of ~40%.
In the next part, we’ll see why Hewlett-Packard’s Personal Systems revenue fell in fiscal 2Q16.
Hewlett-Packard (HPQ) believes that it's on track to reduce its cost structure by more than $1 billion in fiscal 2016.
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