Quarterly results beat estimates on higher PC sales
24 February, 2018, 12:00 am
HP Inc (HPQ.N), which houses the hardware business of former Hewlett-Packard Co, reported a better-than-expected revenue and profit in the first quarter as the company sold more personal computers and printers.
Shares of the company rose 8 per cent to $US23.11 ($F46.66) after the bell on Thursday.
HP Inc’s personal systems business, which accounts for nearly two-thirds of the company’s total revenue, rose nearly 15 per cent to $US9.44 billion ($F19b), beating the average analyst estimate of $US8.50b ($F17b).
Despite a shrinking PC market in the United States, the company continued to pick up market share, after toppling Lenovo Group Ltd (0992.HK) last year from the top position globally, according to research firm Gartner Inc (IT.N).
Net earnings rose to $US1.94b ($F3.9b), or $1.16 per share, in the quarter ended January 31, from $US611 million ($F1.2b), or 36 cents per share, a year earlier, benefiting from a one-time tax gain of $US1.03b ($F2b).
Revenue rose 14.5 per cent to $US14.52b ($F29b).
Excluding items, the Palo Alto, California-based company earned 48 cents per share. Analysts on average were expecting 42 cents per share and revenue of $US13.49b ($F27b), according to Thomson Reuters I/B/E/S.