HP (HPQ) Q4 Earnings And Revenues Top Estimates, Rise Y/Y
Zacks Investment Research | Nov 26, 2019 09:55PM ET
HP (NYSE:HPQ) delivered fourth-quarter fiscal 2019 non-GAAP earnings from continuing operations of 60 cents per share, beating the Zacks Consensus Estimate by 3.45% and also the year-ago quarterly figure by 11%.
Also, HP’s net revenues of $15.4 billion surpassed the Zacks Consensus Estimate of $15.3 billion and inched up 0.3% year over year as well. Moreover, in constant currency (cc), revenues rose 2%.
HP’s results in the fiscal third quarter benefited from strong growth in Personal Systems revenues. Broad-based growth across all products and geographies is helping the company outperform the PC market. However, weakness in the Printing business is a lingering challenge.
Quarter in Detail
Personal Systems (68% of net revenues) revenues were $10.4 billion, up 4% year over year. Further, commercial revenues increased 8% but consumer revenues were down 4%.
HP’s total units sold rose 8% from the year-ago quarter. Also, Notebooks registered a 9% climb while desktop units improved 5% year over year.
Notebooks (60% of Personal Systems revenues), Desktop (30%) and workstation (6.2%) revenues were up 2%, 5% and 12%, respectively.
Management noted that the company witnessed double-digit revenue growth in retail solutions business and gaming as well as services orders.
Printing business revenues (33.6% of net revenues) were down 6% year over year to $4.98 billion.
HP’s total hardware units sold declined 9%. Moreover, Consumer Hardware unit fell 10% and Commercial Hardware unit dipped 1% on a year-over-year basis.
Commercial Hardware revenues slid 2% year over year. Further, revenues from Consumer Hardware and Supplies decreased 10% and 7%, respectively. Macroeconomic weakness, particularly in Europe, the Middle East and Africa (EMEA), is denting Supplies revenues.
Region wise, at cc, revenues from Americas (44% of net revenues) and Asia-Pacific plus Japan regions (23%) improved 1% and 7%, respectively. Meanwhile, EMEA (33%) revenues were flat.
HP Inc. Price, Consensus and EPS Surprise
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