Editor’s note: It’s earnings day for HP, and analysts at Technology Business Research aren’t expecting much in the way of good news. Our Insiders get the details. 

HAMPTON, N.H. – During HP’s CY3Q15 (FY4Q15) earnings announcement today, TBR expects the vendor will report a revenue decline of 5.8% year-to-year to $26.8 billion. In its last quarter as a single company, TBR expects that only HP’s Enterprise Group (EG) business segment will achieve year-to-year revenue growth, rising 0.8% to $7.3 billion. HP continues to drive sales growth from its core industry-standard server business; however, the company’s challenges expanding from its legacy as a point-product vendor to an IT solutions provider will hinder its 3Q15 EG revenue performance.

TBR expects HP will report revenue from its Personal Systems, Printing, Software and Services businesses contracted year-to-year in 3Q15, with the largest decline (an estimated 13.4% year-to-year) coming from Personal Systems, due to weak demand for traditional desktop and notebook PCs, and extended device lifecycles. TBR also expects HP will report a Services revenue decline of 10.8% year-to-year in 3Q15, as the company continued to realign around higher-margin technologies such as cloud, analytics and mobility while allowing low-value account runoff.

HP continued to refine its portfolio and go-to-market strategies in 3Q15 to better target customers undertaking large-scale transformational initiatives around cloud, mobility and analytics. In October, just over a year and a half after announcing its OpenStack-based cloud brand, Helion, HP announced its exit from the public cloud market, effective Jan. 31, 2016. TBR believes HP’s decision to focus on strengths such as private cloud (both virtual and managed), cloud components (the hardware and software foundation) and value-added services shows its customers and partners the company has a renewed energy, focus and more forward-looking strategy.

HP’s split into HP Inc. and Hewlett Packard Enterprise on Nov. 1st gives the separate entities more agility and means to invest for the future. Narrowing its aim on core competencies is a marked improvement in HP’s go-to-market strategy. HP Inc. and Hewlett Packard Enterprise will focus on protecting operating margins, reducing expenses for secondary business units such as proprietary servers and enterprise services, and reallocating resources to better align to their separate objectives. As a result, HP Inc. and Hewlett Packard Enterprise will be better able to address changes in the PC and data center markets stemming from disruptive technology trends such as 3D printing, IoT, mobility, cloud computing and analytics.

(C) TBR