Despite being totally Megless, HP Inc stands on its own two feet
Still some money to be had in desktops and printers, it seems
HP Inc continues to thrive in the PC and printer markets to the tune of double-digit revenue growth.
The personal compute side of the Hewlett Packard breakup soared past analyst estimates to report a solid Q3 for FY 2017, ended July 31:
- Revenues of $13.1bn were up 10 per cent from the year-ago quarter and well beyond analyst estimates of $12.3bn.
- Net income was $696m, down 11 per cent from $783m in Q3 2016, due in part to higher cost of revenue. Essentially, the cost of components, such as DRAM, is increasing across the industry, hitting manufacturers' and buyers' bottom lines.
- Earnings per share (non-GAAP) were $0.43, topping estimates of $0.42.
- Personal Systems Group revenues were $8.4bn, up 12 per cent from the year-ago quarter. All three parts of the group delivered good news as notebooks (up 16 per cent), workstations (up 11 per cent) and even desktops (up 5 per cent) saw revenues climb from the year-ago quarter.
- Printing group revenues were up 6 per cent, as consumer hardware was up 3 per cent and supply revenues were up 10 per cent. Commercial printing hardware revenue was down 2 per cent.
"Q3 was another outstanding quarter of successfully executing our reinvention strategy,” said HP Inc president and CEO Dion Weisler.
"We stabilized supplies revenue a quarter earlier than expected, posted double-digit revenue growth, delivered non-GAAP earnings per share at the high end of our previously provided outlook range and generated approximately $1.7 billion in free cash flow."
On the subject of rising component prices, though, he added: "We've got to stay out in front of these cost increases."
Execs noted that the Personal Systems Group has now been able to record three consecutive quarters of double-digit revenue growth and has further expanded HP's top share in the PC market.
This after a rough FY2016 that marked HP Inc's first year as a stand-alone company following its split from what is now HP Enterprise.
One of the last ties between the two companies was cut last month when HPE chief exec Meg Whitman stepped down from her role on HP Inc's board of directors.
HP Inc's stock price was down 1.27 per cent in after-hours trading to $18.62 apiece. ®