HP returns to growth, but stock falls as profit comes up short
By Emily Bary
PC maker's profit outlook brackets the consensus view
HP Inc. beat revenue expectations for its latest quarter, while coming up short on a profit metric.
The maker of personal computers and printing products (HPQ) on Wednesday posted revenue of $13.52 billion for its fiscal third quarter. That was up from $13.2 billion a year before and ahead of the $13.37 billion FactSet analyst consensus.
The company's personal-systems unit hauled in $9.4 billion in revenue, up 5% from the previous year, while analysts had been expecting $9.2 billion. HP's printing revenue dropped 3% to $4.1 billion, whereas the FactSet consensus was for $4.2 billion.
"We are pleased with our return to revenue growth and proud of the innovations delivered in the quarter, including the launch of our next-generation AI PC lineup," Chief Executive Enrique Lores said in a release.
The stock fell 4.2% in after-hours trading Wednesday, after ending the regular session down 2.4%.
From a profit perspective, HP posted net income of $640 million, or 65 cents a share, compared with $766 million, or 76 cents a share, in the year-earlier period. HP logged adjusted earnings per share of 83 cents, below the 86-cent FactSet consensus view.
For the fiscal fourth quarter, HP models adjusted earnings per share of 89 cents to 99 cents. Analysts were expecting 95 cents.
HP noted in its release that it's boosting its stock-buyback authorization to $10 billion. The company returned about $900 million to shareholders in the latest quarter between its dividend and buyback programs.
-Emily Bary
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08-28-24 2015ET
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