(27 November 2019)DAILY MARKET BRIEF 1:HP Earnings Slide as Printing Business Continues to Struggle

HP Inc. posted lower fiscal fourth-quarter earnings as its printing business remained weak, helping to spur an increasingly acrimonious takeover approach from rival Xerox Holdings Corp. HP said net income fell to $388 million from $1.45 billion a year earlier, when the company's results were boosted by a one-time tax benefit. For the quarter ended Oct. 31, HP reported per-share earnings of 26 cents, down from 91 cents and short of the 51 cents analysts surveyed by FactSet expected. Adjusted earnings, though, rose 11% to 60 cents a share, ahead of the 58 cents analysts expected. The company that is focused on selling computers and printers since Hewlett-Packard Co. split in 2015 said revenue for the quarter rose to $15.41 billion compared with $15.37 billion a year ago. The struggling printer business logged a 6% year-over-year drop in sales. Revenue for the computer-making unit rose 4%, the company said. The earnings cap a tumultuous fiscal year for HP, coming at a time when talks with Xerox have raised questions about its future. In August, HP Chief Executive Dion Weisler stepped down, citing a family health matter. HP also has been struggling with falling demand in its printing business, which had been a key profit driver. That has weighed on the stock.