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Strong notebook sales help HP top revenue estimates

HP Inc reported better-than-expected quarterly revenue and raised its full-year profit forecast, 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.

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

Shares of HP Inc 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 and $2.02 per share, from $1.90 to $2.00. Analysts on average were expecting $1.97, according to Thomson Reuters.

HP Inc’s personal systems business, which includes notebooks and desktops and accounts for more than 60pc of total revenue, rose 14.5pc to $8.76bn (€7.5bn) in the second quarter.

Analysts on average had expected $8.28bn.

The California-based company had the top position in worldwide PC shipments in the first calendar quarter of 2018 with a 22.6pc 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 Co’s printer business last year, said revenue from its printing business rose 10.9pc to $5.24bn (€4.5bn), above analysts’ estimate of $5.13bn.

Net earnings jumped 89.3pc to $1.06bn, or 64 cents per share, in the quarter ended April 30, mostly helped by a one-time tax benefit of $975m (€839m).

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

Revenue rose 13.1pc to $14bn, above analysts’ average estimate of $13.57bn.




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