HP Inc tops revenue estimates on growth in personal systems business
Shares of HP Inc, which houses the hardware business of former Hewlett-Packard Co, were marginally up in extended trading.
The personal systems business, which accounts for more than 60 percent of HP Inc`s total revenue, rose 11 percent to $10.06 billion, beating analysts` average estimate of $9.78 billion, according to IBES data from Refinitiv.
"On the PC side, we are impressed, particularly amidst a backdrop of reported `CPU shortages` that are already well-known," said David Ryzhik, an analyst with Susquehanna Financial Group.
The Palo Alto, California-based company had the second position in worldwide PC shipments in the third quarter with a 22.8 percent market share, down from 23.9 percent in the preceding quarter, according to research firm International Data Corp`s data https://www.idc.com/getdoc.jsp?containerId=prUS44385418.
HP Inc said revenue from its printing business rose 9.1 percent to $5.30 billion, falling slightly short of analysts` estimate of $5.31 billion.
The company completed the acquisition of Samsung Electronics Co Ltd`s printer business for $1.05 billion in November last year as a part of its efforts to strengthen the sluggish printer and copier business.
HP Inc said, in a post earnings call with analysts, it has not considered any impact from unannounced tariffs or any significant demand changes that may result from an increase in geopolitical uncertainties.
The company also forecast current-quarter adjusted profit between 50 cents to 53 cents per share. Analysts expect a profit of 52 cents per share.
Net earnings rose to $1.45 billion, or 91 cents per share, in the fourth quarter ended Oct. 31, from $660 million, or 39 cents per share, a year earlier.
Excluding items, the company earned 54 cents per share, in line with average analyst estimates.
The company said its fourth quarter adjusted earnings and profit exclude after-tax adjustments of $586 million, or 37 cents per share, related to restructuring and other charges and acquisition-related charges.
Net revenue rose 10.3 percent $15.37 billion. Analysts on an average had expected the company to report a revenue of $15.1 billion.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.