HP just recorded a net loss of $8.85 billion for the third quarter of 2012. Ouch. The company also reported net revenue of $29.7 billion for the quarter, down from the $31.8 billion it brought in last year and $30.6 billion it reported last quarter. The company’s revenues missed Wall Street estimates of $30.1 billion for the quarter.
HP’s huge hit is largely attributed to an $8.83 billion loss the company reported in earnings from operations, which included the write-down if HP’s services business, Reuters explained Wednesday. The company reported $1.00 earnings per share (EPS) compared to estimates of $0.98 EPS. HP President CEO Meg Whitman said the poor quarter is largely due to the firm’s turnaround and that it’s still making “headwinds.”
“HP is still in the early stages of a multi-year turnaround, and we’re making decent progress despite the headwinds,” said Whitman. “During the quarter we took important steps to focus on strategic priorities, manage costs, drive needed organizational change, and improve the balance sheet. We continue to deliver on what we say we will do.”
HP’s personal systems group, the piece of the company responsible for computers, struggled throughout the quarter, however. The group’s revenue was down 10% year-on-year. Its desktop unit revenues fell 6% and notebook unit revenues tanked 12%.