HP Defies PC Industry Slump, Sales Up 11%
Considered the world’s largest PC maker, HP has beat analyst expectations for its latest earnings result, posting an 11% increase in sales across all product units and regions.
The results make HP the best selling PC brand – for the second consecutive quarter – ahead of rival Lenovo.
HP’s latest earnings results defy the current ‘slump’ in the PC industry, notching the company its fifth consecutive quarterly increase.
PC shipments for the company jumped 4.4%, compared to the same period last year. By contrast, Gartner has revealed that shipments for the PC industry dropped 3.6% within the same period.
The company’s adjusted profit for the recent quarter (ending October 31st) matched analysts’ forecasts of US$0.44.
The results follow the work of CEO, Dion Wiesler, who has reportedly engaged in cost-cutting over the past year, whilst also expanding the organisation’s 3-D printing product offerings.
HP claims these efforts have increased revenue 11%, up from US$13.9 million during the corresponding period last year.
PC shipments for the company jumped 4.4%, compared to the same period in 2016.
Net income jumped to US$660 million (39 cents per share) up from US$492 million (28 cents per share) last year.
Total costs for the organisation increased about 10% in the quarter, however, HP Inc’s CFO Catherine Lesjak affirms that the jump is proportionately smaller than the increase in sales, and is spread across “R&D, marketing and field-selling costs”.
The better-than-expected earnings results have enabled HP to slightly increase its profit outlook for 2018 (by 1%). Some analysts predict that profit for the current period (starting November 1st) may dip slightly below expectations.
The company’s printing division climbed 7% to US$4.88 billion, notably after the acquisition of Samsung Electronics Co’s printer business.
The deal has reportedly prompted the company to increase its adjusted profit forecast for 2018 to US$1.75 – US$1.85 per share.