UPDATE: HP Earnings Show Why It Wants Out Of The PC Market

leo apotheker HP

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Hewlett-Packard’s Q3 earnings are out early: EPS of $0.93 on revenue of $31.2 billion. Non-GAAP EPS was $1.10.That’s slightly ahead of what Wall Street was expecting: non-GAAP EPS of $1.09 on sales of $31.19 billion.

The company also confirmed rumours that it is considering spinning off its PC business.

It also surprised investors by shutting down the TouchPad business, only a few weeks after the tablet launched — a report on Tuesday said that Best Buy had sold only about 25,000 out of an order of more than 270,000.

Update: The official earnings release crossed the wire around 4 pm ET. In it, HP confirmed that it’s buying Autonomy for $42.11 per share. 

The release also contains the usual breakdown of HP’s results by business unit, and it’s pretty clear why it’s not happy with the PC business — the company’s Personal Systems Group posted its third year-to-year decline in a row, off 3%. Consumer PC revenue was particularly weak — down 17%.

Printing — long a strong point for HP — revenue was also down 1%.

The standouts were financing (up 22%), software (+20%) and enterprise (+7%)

HP also guided investors that it now expects full year fiscal 2011 revenue between $127.2 billion and $127.6 billion, diluted EPS of $3.59 to $3.70, and non-GAAP diluted EPS of $4.82 to $4.86.