HP defies stagnating PC market with another strong quarter
But job losses are still on the wayBy Rob Thubron
Why it matters: The PC market might have been stagnating for several years now, but it seems nobody told HP Inc. The biggest personal computer maker in the world continues to see growth and has had yet another great quarter, beating analysts' expectations in its Q2 2018 revenue report.
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.