(Bloomberg) -- HP Inc. reported sales that fell further than analysts’ estimated, a sign the company continues to be hamstrung by the ongoing slump in demand for personal computers.

Revenue declined 22% to $12.9 billion on a worse-than-expected drop in consumer PC sales, the company said Tuesday in a statement. HP’s Personal Systems segment fell 29% to $8.2 billion, compared with analysts’ average estimate of $8.4 billion.

“The macro situation is obviously impacting demand across industries,” Chief Executive Officer Enrique Lores said in an interview. 

Still, Lores remains optimistic and the company affirmed its full-year forecast for cash flow.

“We think the second half will be stronger than the first,” Lores said, citing a reduction of inventory with channel parters and the traditionally high back-to-school and holiday sales seasons. 

The shares declined about 1% in extended trading, after closing at $30.93 in New York. The stock has gained 15% this year.

Free cash flow in the fiscal year ending in October will be about $3.25 billion. The guidance is the same as that issued in February and assumes improving demand for personal computers in the coming quarters. HP also narrowed its forecast for fiscal-year adjusted profit to $3.30 to $3.50 a share, topping analysts’ average estimate, according to data compiled by Bloomberg.

The PC market showed “weak demand, excess inventory, and a worsening macroeconomic climate,” from January-March, industry analyst IDC reported last month.

Printing revenue slipped 5% to $4.7 billion in the period ended April 30. Analysts, on average, projected $4.6 billion. The print business should perform similarly in the second half of the year, Lores said.

New data showing stability in hybrid work has some benefits for HP, Meta Marshall, an analyst at Morgan Stanley, wrote in advance of the results. Printing, however, remains a category where spending continues to falter, she added.

HP reported profit, excluding some items, of 80 cents a share in the quarter, topping the average estimate of 76 cents. Adjusted earnings per share will be 81 cents to 91 cents in the current period ending in July, the Palo Alto, California-based company said.

Chief Financial Officer Marie Myers said the company is on-track to deliver 40% of its $1.4 billion in planned savings by the end of 2023.

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