HP reports gratifying revenue and raises full-year profit forecast

World
Europe

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

The company raised its forecast for full-year adjusted profit to between 1.97 US dollar and 2.02 US dollars per share, from 1.90 to 2.00 US dollars. Analysts on average were expecting 1.97 US dollar, according to Thomson Reuters.

HP Inc’s personal systems business, which includes notebooks and desktops accounts for more than 60 percent of total revenue, rose 14.5 percent to 8.76 billion US dollars in the second quarter. Analysts on average had expected 8.28 billion US dollars.

HP Inc. signage stands outside the company's headquarters in Palo Alto, California, May 28, 2018. /VCG Photo

International Data Corp’s (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 Co’s printer business last year, said revenue from its printing business rose 10.9 percent to 5.24 billion US dollars, above analysts’ estimate of 5.13 billion US dollars.

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

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

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

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.

Source(s): Reuters