HP Inc. said it will use the gains from a divestiture announced earlier this week in its printing business to reduce built-up inventory at distributors as it grapples with changing demands in its industry.
The company’s move will reduce revenue in the supplies category, including items like ink cartridges and toner, by about $450 million over two quarters, Chief Financial Officer Catherine Lesjak said Tuesday on a conference call with analysts. HP Inc. will gain about $285 million from the divestiture of its Marketing Optimization assets. The company said it will pay back the investment over three years.
HP Inc. raised its forecast for adjusted profit in the current quarter to 43 cents to 46 cents a share from 37 cents to 40 cents. The company also reiterated its full-year forecast for adjusted profit from continuing operations at $1.59 a share to $1.65 a share.
HP Inc., which split from Hewlett Packard Enterprise last year, is looking for new ways to stabilize sales and bolster profit margins as it deals with changing tastes for printers and personal computers. Shares declined 3.8 percent in extended trading after closing at $13.33 in New York.