HP Tops Revenue Estimates, Raises Forecast on PC Demand

HP reported better-than-expected quarterly revenue and raised its full-year profit forecast on Tuesday, helped by strong demand for its notebooks and desktops.

The company also named Steve Fieler as its chief financial officer, succeeding 32-year HP veteran Cathie Lesjak.

Fieler, whose appointment is effective July 1, currently leads HP Inc’s treasury and corporate finance functions. Lesjak will step into the role of interim chief operating officer.

Shares of HP, formed out of the 2015 split of Hewlett-Packard Co, were marginally up in extended trading.

The company raised its forecast for full-year adjusted profit to between $1.97 (roughly Rs. 134) and $2.02 (roughly Rs. 137) per share, from $1.90 (roughly Rs. 129) to $2.00 (roughly Rs. 136). Analysts on average were expecting $1.97 (roughly Rs. 134), according to Thomson Reuters.

HP Inc’s personal systems business, which includes notebooks and desktops and accounts for more than 60 percent of total revenue, rose 14.5 percent to $8.76 billion (roughly Rs. 5,90,00 crores) in the second quarter. Analysts on average had expected $8.28 billion (roughly Rs. 5,60,000 crores).

The Palo Alto, California-based company had the top position in worldwide PC shipments in the first calendar quarter of 2018 with a 22.6 percent market share, according to research firm International Data Corp’s (IDC) data.

IDC analysts have said demand for premium notebooks in both the consumer and commercial segments have helped major PC vendors to retain better margins and garner buyer interest.

HP Inc, which completed the acquisition of Samsung Electronics’ printer business last year, said revenue from its printing business rose 10.9 percent to $5.24 billion, above analysts’ estimate of $5.13 billion.

Net earnings jumped 89.3 percent to $1.06 billion, or 64 cents per share, in the quarter ended April 30, mostly helped by a one-time tax benefit of $975 million.

Excluding items, the company earned 48 cents per share, in line with Wall Street estimates.

Revenue rose 13.1 percent to $14 billion, above analysts’ average estimate of $13.57 billion.

© Thomson Reuters 2018

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