HP back in black

Marco Green
February 23, 2018

The growth of PC sales in Q1 has helped HP gain 14 per cent in revenue to US$14.5bn from US$13.9bn. Analysts polled by Thomson Reuters expected earnings of USD0.42 per share. The shares jumped as much as 9.3 percent in late trading.

The company's Chief Executive Officer Dion Weisler offered his thoughts on HP's performance, saying: "We've delivered what we said we would do". During the last quarter, its customers turned away from cheaper devices in favour of more premium systems and machines designed for gaming. "We outpaced the market growth in every single region".

Shares of the company rose 8 percent to $23.11 after the bell on Thursday. Earlier, the stock closed at $21.39 in NY.

Net income for the first quarter climbed to $1.94 billion, or $1.16 a share.

Excluding items, the Palo Alto, California-based company earned 48 cents per share. Analysts have been concerned about the high costs of memory components pinching HP's profits. Analysts had a consensus revenue estimate of USD13.49 billion for the quarter.

The company said it expects fiscal 2018 earnings per share to be in the range of $1.90 to $2.00, up from $1.75 to $1.85.

It has been a busy time for HP, which is the hardware-focused business formed out of the split of Hewlett-Packard back in 2015. In the years since the breakup, the consumer-facing PC and printer business has defied expectations and been the more stable performer.

The Palo Alto, California-based company, which completed the acquisition of Samsung Electronics Co.'s printer business a year ago, said revenue from its printer business rose 13.7 percent to US$5.08 billion, above the average analyst estimate of US$4.76 billion. Unit sales dropped slightly overall in 2017.

Likewise, the printer business rose 13.7 percent to $5.1bn (£3.6bn) from $4.5bn (£3.2bn).

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