HP Inc (NYSE: HPQ)
HP reported better-than-expected third quarter results late Thursday, but its shares fell in the negative territory during the extended trading session. Both earnings and revenue came in higher from a similar period last year. HP also issued earnings estimates for the current quarter that are in line with Wall Street estimates.
Its Personal Systems segment, which sells commercial, and consumer PCs, desktops, notebooks and workstations generated the most revenue for the firm. The positive earnings were aided by strong Windows 10 earnings as more customers migrated from older systems.
HP shares fell 3.3% to $23.86 in the early minutes of regular trading on Friday. The stock has gained nearly 17 percent year-to-date.
HPQ Earnings & Forecast
During the quarter, HP posted adjusted earnings per share of $0.52 narrowly surpassing Wall Street estimate of $0.51. In the same period last year, the firm posted adjusted earnings per share of $0.43.
Revenue came in at $14.59 billion, up 12% from $13.06 billion in the third quarter of the previous year. The company also beat analyst revenue estimate of $14.27 billion. Over the last four quarters, HP has surpassed revenue estimates two times.
Looking ahead, it expects to post adjusted earnings per share in the range of $0.52 to $0.55 for the final quarter. Analysts are for adjusted earnings of $0.53 per share for the current quarter and $2 for the full year.
Thompson Reuters, based on analyst predictions, expects the company to report revenues of $14.73 billion for the current quarter and $57.51 billion for the full year.
HP CEO Comments
“Quarter three was another strong quarter, with consistent and balanced performance across segments and regions. We delivered differentiated innovation in our core, advanced our growth initiatives and are investing in our future while delivering profitable growth,” President and CEO Dion Weisler said in a statement.
“Ensuring the world’s industrial product engineers have integrated design tools for 3D production is a critical enabler for market expansion. We are still in the very early stages of this business, but remain excited and optimistic with our ability to disrupt the $12 trillion global manufacturing market.”
“We are pleased with the success in the business. Looking ahead to Q4, we are monitoring several evolving market dynamics, including the global trade environment, currency volatility, and industry component availability,” Weisler concluded.
HP Inc. Company Profile
HP Inc. engages in the provision of personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services. It operates through following business segments: Personal Systems, Printing, and Corporate Investments.
The Personal Systems segment offers commercial and consumer desktop and notebook personal computers, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support and services for the commercial and consumer markets.
The Printing segment gives consumer and commercial printer hardware, supplies, solutions and services, and scanning devices. The Corporate Investments segment includes HP Labs and certain business incubation projects. The company was founded by William R. Hewlett and David Packard in 1939 and is headquartered in Palo Alto, CA. –CNNMoney