HP defies stagnating PC market with another strong quarter

midian182

TechSpot Editor
Staff member

For the three months to April 30, HP Inc’s revenue was up 13 percent YoY to $14 billion, marking the seventh quarter in a row that sales have grown. The company’s personal systems business, which covers notebooks and desktops, was up 14.5 percent to $8.76 billion in Q2, beating analysts’ predictions of $8.28 billion.

Net income saw a massive 89 percent jump from $600 million one year ago to $1.1 billion, while non-GAAP earnings per share were $0.48. Revenue from the firm’s printing business was also up YoY, climbing 11 percent from $4.73 billion to $5.24 billion.

HP Inc. has raised its full-year adjusted profit estimates to between $1.97 to $2.02 per share, up from $1.90 to $2.00. Analysts were looking for $1.97. It also increased its projected cash flow for 2018, from $3 billion up to $3.7 billion.

Despite the positive quarter, HP Inc. is increasing its reorganizational efforts. The company is cutting around 1 to 2 percent of its workforce, and expects restructuring costs to raise by $150 million to $200 million.

"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,” said CEO Dion Weisler.

Thanks to strong sales of high-end PCs such as gaming laptops, HP Inc. appears to be the exception in what is currently a sluggish industry. IDC reports that it shipped 13.7 million computers in Q1, giving it a 23 percent market share and yearly growth of 4.3 percent.

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Trillionsin

TS Evangelist
I'm no marketing wiz... but doesn't that mean it's not stagnating?

Also, why is this really a concern? Only for manufacturers....?
I skimmed it, I'll admit.. but I still don't see why it matters to the every day Joe.
 

texasrattler

TS Evangelist
It doesn't matter to the avg Joe, they could careless. Overall they are saying the pc market is staggering, HP is just the exception.
It's a concern for manufacturers but not just them because if no one is buying anything then they wont be making new products or restocking many. This can affect stock a different retailers.

At a Best Buy near me, HP and Apple seem to be the biggest sellers according to the store.