HP Inc. (HPQ – Analyst Report) is slated to report second-quarter fiscal 2016 results – the second quarterly numbers post its split from Hewlett-Packard Company – on May 25. Notably, after about a year of consideration, Hewlett-Packard Company successfully split itself into two standalone companies – HP Inc. and Hewlett-Packard Enterprise (HPE – Snapshot Report) – effective Nov 1, 2015.

Prior to the split, Hewlett-Packard Company was a leading global provider of computing products, technologies, software and services to individual consumers, SMBs and large enterprises, including those in the public and educational sectors. Products such as PCs and access devices, imaging and printing-related products and services, enterprise IT infrastructure and multi-vendor customer services including support, maintenance, consulting, integration and outsourcing were offered by the company.

Post the split, Hewlett-Packard Company’s PC and printer business operates under the name HP Inc., while Hewlett-Packard Enterprise offers the commercial tech products.

Last quarter, HP Inc. posted in-line earnings. Let’s see how things are shaping up for this announcement.

Factors to Consider

The persistent decline in PC shipments has been a drag on HP Inc.’s top line of late. Demand for desktop PCs and printers is not as strong as it was a decade ago. Technology and consumer demand is shifting toward mobile devices and cloud storage – something companies like Google, Amazon, Apple, and Dell are capitalizing on.

According to Gartner’s latest report, PC shipments (including premium ultra-mobiles) in first-quarter 2016 fell 9.6% year over year to 64.8 million units, the lowest level since 2007. The appreciating U.S. dollar, the consumer segment’s lack of interest in new PCs as they are opting for inexpensive mobile devices and the delay in fully deploying Windows 10 operating systems by enterprises were the main reason behind the dismal performance.