HP Inc. Q4 profit surges, revenues top estimatesStaff Writer |
HP Inc. HP's fourth-quarter profit rose to $1.45 billion
HP Inc. on Thursday reported a profit for the fourth quarter that more-than-doubled from last year driven largely by 10 percent growth in revenues.
The PC giant detailed a second-quarter and full year outlook above current market consensus, sending its shares up 7 percent extended session.
HP's fourth-quarter profit rose to $1.45 billion or $0.91 per share from $660 million or $0.39 per share last year. Excluding one-time items, adjusted earnings for the quarter rose to $0.54 per share from $0.44 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.54 per share.
Revenues for the quarter rose 10 percent to $15.37 billion from $13.93 billion last year. Analysts had a consensus revenue estimate of $15.10 billion for the quarter.
HP, like other personal computers, has been negatively impacted by lower demand for PCs and notebooks as consumers have switched to tablets and smartphones. However, the company's recent shift in focus to a more high-end premium models and cost savings initiatives has worked in its favor.
In the fourth quarter, Personal Systems revenues rose 11 percent, while total printing segment revenues gained 9 percent.
"Our results once again demonstrate HP's consistent performance with full year non-GAAP EPS growth of 22% year over year and free cash flow generation of $4.2 billion," said Dion Weisler, President and CEO, HP Inc. "These results reflect our continued innovation across the portfolio and sharp execution across segments and regions as we position HP for continued long-term sustainable growth."
Looking forward to the first quarter, HP expects adjusted earnings of $0.50 to $0.53 per share. For the full-year 2019, HP now sees adjusted earnings of $2.12 to $2.22 per share. ■
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