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HP's Q2 2012 financial results: $1.6b earnings on $30.7b revenue

HP's Q2 2012 financial results: $1.6b earnings on $30.7b revenue

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HP announced earnings for the second quarter of 2012 today.

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HP just reported financials for the second quarter of 2012: $1.6 billion in GAAP earnings on net revenue of $30.7 billion. That represents a revenue decline of 3 percent versus the same quarter a year prior and a more striking 31 percent decline in earnings — bad, though not quite as bad as the 38 percent decline HP saw in Q1.

Historically, HP's printer division practically printed money, but cracks have been showing in recent quarters; that trend continues here with a recorded 10 percent decline versus Q2 2011 in the so-called Imaging and Printing Group of the company (IPG). Breaking it down, consumer demand is particularly weak: revenue in that side of the business was down 15 percent versus 4 percent in commercial.

The Personal Systems Group — PCs, that is — is where much of the focus on today's announcement lies, particularly in light of Lenovo's fantastic numbers this week. PSG's device shipments were down 1 percent overall year over year, with consumer demand again bearing the brunt: end users accounted for a 4 percent decline in revenue, while commercial revenue was actually up 3 percent. Desktop shipments climbed by 5 percent and laptops fell by 6 percent; HP noted on its call that consumer demand for laptops was particularly "soft."

Hear the full call below.