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Second Quarterly Results Of HP Beat Estimates As Revenues Grows In Double Digits

By:
Neha Gupta
Updated: May 31, 2018, 08:10 UTC

In the quarter which ended on April 30 personal computing and printer firm HP announced that total revenues had increased by 13% year-over-year to reach a figure of $14 billion.

HP World Headquarters

These figures were better than expected and they were attributed primarily to successful product rollouts and strength in printing and personal computing segments.

“We delivered another quarter of double-digit year over year revenue and profit growth, strong EPS and impressive free cash flow and performed well across segments and regions. Our sharp focus on innovation, combined with operational excellence and driving profitable growth is paying off,” the president and chief executive officer of HP Inc, Dion Weisler, said.

Personal systems unit

In the personal systems, category revenues increased by 14% year-on-year to reach a figure of $8.8 billion and this was due to the strong demand that was experienced with regards to high-end products. Additionally, prices for products in this category were raised by 7%. Consumer revenues increased by 10% while commercial revenues rose by 16%.

Revenues in HP’s printing business increased by 11% year-on-year to reach a figure of $5.2 billion. This was attributed to an increase of 8% in supplies revenues as well as the integration of South Korea-based Samsung’s printing business, S-Print which was acquired recently. By acquiring S-Print HP got a boost in the premium copier machine market that is currently dominated by Xerox Corporation.

Consumer and commercial hardware

The total hardware unit revenues increased by 13% and this was as a result of a growth of 4% in the consumer hardware unit. The commercial hardware unit, on the other hand, saw growth of 88% year-over-year. The impressive growth recorded in the commercial hardware unit was as a result of the integration of S-Print.

In all the regions that HP operates in, there was double-digit growth in revenues with the exception of the Americas where year-over-year growth was 7%. In the Japan and Asia Pacific region, 13% year-over-year growth was recorded while in the EMEA region revenues grew by 21% year-over-year. EMEA is an acronym for Europe, Middle East, and Africa.

Net earnings, on the other hand, increased by 89.3% to reach a figure of $1.06 billion in the quarter. This translated to net earnings per share of 64 cents and this increase was partly as a result of the tax benefit amounting to $975 million.

Global leader

According to International Data Corp, a research firm, HP was the worldwide leader with regards to shipments of a personal computer in this year’s first quarter with a market share of 22.6%. Per analysts at International Data Corp major PC, vendors have been helped by rising demand for high-end notebooks.

At the same time, HP has named Steve Fieler, its current head of corporate finance and treasury as the incoming chief financial officer. He will be taking over from Cathie Lesjak starting July 1, 2018. In an interim capacity, Lesjak will take over as the chief operating officer of the company before she retires early next year. Lesjak is a veteran Hewlett Packard executive having worked at the company for more than three decades.

About the Author

Neha Gupta has been in the financial space for over six years now. She is a veteran in article writing, which is depicted in her numerous pieces published in other well-known websites.

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