HP (HPQ 22.08, +0.78, +3.66%) climbed 4.9% in pre-market after
reporting in-line earnings for the second quarter.
The legacy tech company, which sells desktops, laptops, printers, and accessories, reported in-line second quarter earnings of $0.48/share on a 12.9% year/year increase in revenue to $14.00 bln, which was ahead of expectations.
Looking at the segment breakdown, Personal Systems revenue grew 14.0% year/year to $8.8 bln. Notebook sales accounted for 59.0% of revenue while desktops made up 31.0% of segment sales. Workstation sales represented 6.0% of revenue while Other sales made up the remaining 4.0%. Unit sales of notebooks and desktops increased 7.0% apiece. HP's consumer market share improved one percentage point to 22.7% while commercial market share increased 0.4 percentage points to 26.6%.
Printing revenue rose 11.0% year/year to $5.2 bln. Sales of supplies made up 65.0% of total sales while commercial hardware sales and consumer hardware sales represented 23.0% and 12.0% of segment revenue, respectively. Unit sales of commercial hardware grew 88.0% while unit sales of consumer hardware increased 4.0%.
HP ended the quarter with gross cash of $5.3 bln, down from $6.20 bln one year ago. Gross debt declined to $6.20 bln from $6.80 bln one year ago.
Inventory increased to $5.6 bln from $4.80 bln one year ago.
Looking ahead, HP expects that earnings for the third quarter will be between $0.49 and $0.52/share, which encompasses current market expectations. The company boosted its guidance for the fiscal year, expecting earnings between $1.97 and $2.02/share, up from previous guidance for earnings between $1.90 and $2.00/share.
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