NEW YORK - HP reported second-quarter sales that fell further than analysts’ estimates, a sign that the company continues to be hamstrung by the ongoing slump in demand for personal computers.

Revenue declined 22 per cent to US$12.9 billion (S$17.5 billion) on a worse-than-expected drop in consumer PC sales, the company said on Tuesday.

Sales for its personal systems segment – home to its desktop and notebook PCs – fell 29 per cent to US$8.2 billion, compared with an average analyst estimate of US$8.4 billion.

“The macro situation is obviously impacting demand across industries,” said chief executive Enrique Lores in an interview.

The PC market showed “weak demand, excess inventory, and a worsening macroeconomic climate” from January to March, industry analyst IDC reported in April.

Still, Mr Lores remains optimistic and the company affirmed its full-year forecast for cash flow.

“We think the second half will be stronger than the first,” Mr Lores said, citing a reduction of inventory with channel partners and the traditionally high back-to-school and holiday sales seasons.

HP shares fell about 1 per cent in extended trading, after closing at US$30.93 in New York. The stock has gained 15 per cent in 2023.

HP narrowed its forecast for fiscal-year adjusted profit to US$3.30 to US$3.50 a share, topping an average analyst estimate, according to data compiled by Bloomberg.

The company reported profit, excluding some items, of 80 US cents a share in the quarter, topping the average estimate of 76 cents.

Printing revenue slipped 5 per cent to US$4.7 billion in the period ended April 30. Analysts, on average, projected US$4.6 billion. The print business should perform similarly in the second half of 2023, Mr Lores said.

New data showing stability in hybrid work has some benefits for HP, wrote Morgan Stanley analyst Meta Marshall ahead of the results. But printing remains a category where spending continues to falter, she added. BLOOMBERG