HP released its latest earnings report after closing bell tonight, posting adjusted earnings of 48 cents per share on $11.89 billion in revenue. Analysts had been expecting earnings of 44 cents per share on $11.47 billion in revenue for the company’s third fiscal quarter. HP management had guided for non-GAAP earnings of 43 cents to 46 cents per share for the quarter. In last year’s third fiscal quarter, the company reported $12.4 billion in revenue and 35 cents per share in adjusted earnings.

Hewlett-Packard Company HPQ

HP’s profits jump

HP’s GAAP earnings were 49 cents per share, compared to management’s guidance of 40 cents to 43 cents per share. In the year-ago quarter, the company posted GAAP earnings of 39 cents per share.

Net revenues from the company’s Personal Systems segment remained flat with the year-ago result or rose 2% in constant currency. Commercial net revenue in the segment fell 3% year over year, while consumer net revenue rose 8%. Total units increased 4%, including 12% increase in Notebook units and a 6% decline in Desktops.

Net revenues from the Printing business declined 14% or 10% in constant currency. HP said total hardware units in the segment fell 10%, with a 2% decline in commercial hardware units and a 14% decline in consumer hardware. Supplies revenue fell 18% or 13% in constant currency.

HP’s guidance disappoints

HP expects its GAAP earnings from continuing operations to be between 22 cents and 25 cents per share for the fourth fiscal quarter. It projects non-GAAP earnings from continuing operations to be between 34 cents and 37 cents per share. The non-GAAP number excludes 12 cents per share related to restructuring and other charges. Wall Street’s consensus for HP’s fourth quarter stands at 41 cents per share in adjusted earnings and $11.8 billion in revenue.

For the full year, HP expects GAAP earnings of $1.46 to $1.49 per share from continuing operations and non-GAAP earnings of $1.59 to $1.62 per share from continuing operations. Wall Street currently projects $47 billion in revenue and $1.62 per share in adjusted earnings for the fiscal 2016.

HP also said it is on track to cut its cost structure by more than $1 billion.

Shares of HP slumped by as much as 4.44% to $13.76 in after-hours trades on Wednesday. The stock closed Wednesday’s regular trading hours down 1.17% at $14.40 before tonight’s earnings report.