HP Posts Solid Q2 Earnings Despite Printer Weakness

By Chris Lange Updated Jan 30, 8:24PM EST · Published May 24, 10:10AM EDT

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HP Posts Solid Q2 Earnings Despite Printer Weakness — © Ken Wolter / Shutterstock.com

When HP Inc. (NYSE: HPQ | HPQ Price Prediction) released its fiscal second-quarter results after the markets closed on Thursday, the company said that it had $0.53 in earnings per share (EPS) and $14.04 billion in revenue. That compared with consensus estimates of $0.51 in EPS and $13.97 billion in revenue, as well as the $0.48 per share and $14.0 billion posted in the same period of last year.

Segment results were posted as follows:

Personal Systems net revenue was up 2% year over year (up 5% in constant currency) with a 4.3% operating margin. Commercial net revenue increased 7% and Consumer net revenue decreased 9%. Total units were down 1% with Notebooks units down 5% and Desktops units up 6%.

Printing net revenue was down 2% year over year (down 2% in constant currency) with a 16.4% operating margin. Total hardware units were down 4% with Commercial hardware units down 3% and Consumer hardware units down 4%. Supplies net revenue was down 3% (down 3% in constant currency).

Looking ahead to the fiscal third quarter, HP expects to see GAAP EPS in the range of $0.53 to $0.56. The consensus estimates are $0.55 in EPS and $14.7 billion in revenue for the quarter.

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Dion Weisler, HP’s president and CEO, commented:

We delivered solid Q2 financial results, with strong non-GAAP EPS growing double-digits and coming in at the high end of our outlook. … We continue to strike the right balance between driving results today and investing in innovation to deliver long term financial performance.

Shares of HP traded up more than 4% Friday morning to $20.04, in a 52-week range of $18.06 to $27.08. The consensus price target is $23.48.
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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.