Plus   Neg

HP Profit Surges, Revenues Top Estimates

HP Inc. (HPQ), the PC and printer business of the former Hewlett-Packard Co., on Thursday reported a profit for the fourth quarter that more-than-doubled from last year driven largely by 10 percent growth in revenues. Earnings for the quarter came in line with estimates, while revenues trumped expectations.

The PC giant detailed a second-quarter and full year outlook above current market consensus, sending its shares up 7 percent extended session.

HP's fourth-quarter profit rose to $1.45 billion or $0.91 per share from $660 million or $0.39 per share last year. Excluding one-time items, adjusted earnings for the quarter rose to $0.54 per share from $0.44 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.54 per share.

Revenues for the quarter rose 10 percent to $15.37 billion from $13.93 billion last year. Analysts had a consensus revenue estimate of $15.10 billion for the quarter.

HP, like other personal computers, has been negatively impacted by lower demand for PCs and notebooks as consumers have switched to tablets and smartphones. However, the company's recent shift in focus to a more high-end premium models and cost savings initiatives has worked in its favor.

In the fourth quarter, Personal Systems revenues rose 11 percent, while total printing segment revenues gained 9 percent.

"Our results once again demonstrate HP's consistent performance with full year non-GAAP EPS growth of 22% year over year and free cash flow generation of $4.2 billion," said Dion Weisler, President and CEO, HP Inc. "These results reflect our continued innovation across the portfolio and sharp execution across segments and regions as we position HP for continued long-term sustainable growth."

Looking forward to the first quarter, HP expects adjusted earnings of $0.50 to $0.53 per share. For the full-year 2019, HP now sees adjusted earnings of $2.12 to $2.22 per share.

Analysts currently estimate earnings of $0.52 and $2.19 per share for the second quarter and full year 2019.

HPQ closed regular trading at $22.86, down $0.57 or 2.43%, on the NYSE. The stock, however, gained $0.27 or 1.18% in the after-hours trade.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Royal Bank of Canada (RY, RY.TO) reported that its first-quarter net income to shareholders increased to C$3.10 billion from C$2.93 billion, a year ago. Earnings per share was C$2.15 compared to C$2.01. Adjusted EPS was C$2.19 compared to C$2.05. On average, 12 analysts polled by Thomson Reuters expected... Google added bitcoin's 'B' symbol to its Keyboard on iOS devices, indicating the leading cryptocurrency's growing acceptance in the mainstream industry. The feature, however, is not added to Android keyboards. The addition of the bitcoin currency key reflects Google users' growing interest in bitcoin. According to Google Trends, 'What is Bitcoin?' was the most popular search question in 2018. Shares of Deutsche Telekom AG were losing around 2 percent in German trading after the telecom giant reported Thursday a net loss in its fourth quarter, compared to prior year's profit, despite increased revenues. Looking ahead, the company said its 2019 forecast shows undiminished growth momentum.
Follow RTT