HP Reports Flat Revenue But Beats Wall Street Targets -- 2nd Update
May 23 2019 - 6:54PM
Dow Jones News
By Micah Maidenberg
HP Inc. bolstered revenue in its latest quarter in part by
selling more desktop computers, a gain that helped to offset a
weaker performance in its printing business.
Palo Alto, Calif.-based HP reported revenue from desktop
computers rose 7% in its fiscal second quarter as demand grew,
propelling an increase in revenue of 2% at its personal-systems
unit, which also sells tablets, sales systems for retailers and
other devices.
Overall, HP's revenue of $14.04 billion for the period was flat
compared with a year earlier but slightly surpassed the $13.95
billion that analysts had forecast for the period, according to
FactSet.
"While PC growth across the industry was more subdued this
quarter, HP continued to outperform the market and gain profitable
share," Chief Executive Dion Weisler told analysts on a conference
call.
Shares rose about 2% in aftermarket trading after ending
Thursday's regular session little changed.
Sales of printers, printing supplies and related items dropped
about 2% in the period.
HP's printing business has been a focus for investors, because
it offers the company profit margins that are stronger than those
from its devices.
In the company's fiscal first quarter, a drop in revenue related
to printer supplies like ink and cartridges surprised investors,
who had been expecting a gain, and caused a selloff in the
stock.
The company said revenue from the printer-supplies business
dropped 3% on year.
For the quarter ended April 30, HP's profit fell to $782
million, or 51 cents a share, from $1.06 billion, or 64 cents a
share, a year earlier, when HP's earnings were boosted by a
nonrecurring tax benefit.
Excluding acquisition and restructuring charges and after other
adjustments, HP reported a profit of 53 cents a share, 2 cents
higher than what analysts expected.
The company narrowed its projected profit range for the year. It
now expects an adjusted profit of $2.14 to $2.21 a share, compared
with a previous forecast of $2.12 to $2.22 a share.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
May 23, 2019 18:39 ET (22:39 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
HP (NYSE:HPQ)
Historical Stock Chart
From Aug 2024 to Sep 2024
HP (NYSE:HPQ)
Historical Stock Chart
From Sep 2023 to Sep 2024