HPQ HP Inc

By Maria Armental 

HP Inc.'s sales missed Wall Street targets in the most recent quarter, but the company maintained its full-year outlook on adjusted profit, a sign that executives expect consumers and companies to continue spending on computers and printing equipment.

Revenue in the fiscal first quarter rose 1.3% to $14.71 billion, though analysts polled by FactSet expected $14.86 billion.

Profit for the Palo Alto, Calif.-based company, which last year got a boost from the U.S. tax overhaul, dropped 59% to $803 million, or 51 cents a share. Profit excluding restructuring charges and other items was in line with analysts' estimates at 52 cents a share, up from 48 cents a share a year earlier.

The company affirmed its adjusted profit forecast of $2.12 to $2.22 a share.

An upswing in the personal-computer market has helped the printer and personal-computer giant, born from the 2015 split of Hewlett Packard, post revenue and profit growth in the two most recent years.

In the latest quarter, sales in the personal-systems segment, the company's largest and which includes its PC business, rose 2.3% to $9.66 billion. However, total units sold fell 3% from the year earlier, as notebook units sold declined 1% and sales of desktops fell 8%, HP said.

The printing segment, which includes HP's supplies business, also saw weaker-than-expected revenue at $5.06 billion, which was down slightly from $5.08 billion a year earlier.

This quarter, HP expects earnings of 45 cents to 48 cents a share, or 50 cents to 53 cents a share on an adjusted basis. Analysts expect a profit of 51 cents a share, or 53 cents a share as adjusted.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

February 27, 2019 16:22 ET (21:22 GMT)

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