HP Inc revenue beats Street on notebook PC demand

(Reuters) – HP Inc (HPQ.N) reported better-than-expected quarterly revenue on Tuesday, driven by strong growth in its personal systems business, which includes notebooks and desktops.

FILE PHOTO – A Hewlett-Packard logo is seen at the company’s Executive Briefing Center in Palo Alto, California January 16, 2013. REUTERS/Stephen Lam/File Photo

The company also named Steve Fieler as its chief financial officer, effective July 1, succeeding Cathie Lesjak.

Fieler currently leads the company’s treasury and corporate finance functions.

Shares of HP Inc, formed out of the 2015 split of Hewlett-Packard Co, were marginally up in extended trading.

HP Inc’s personal systems business, which accounts for more than 60 percent of total revenue, rose 14.5 percent to $8.76 billion, beating the average analyst estimate of $8.28 billion, according to Thomson Reuters I/B/E/S.

The Palo Alto, California-based company had the top position in worldwide PC shipments in the first calendar quarter of 2018 with a 22.6 percent market share, according to research firm International Data Corp’s data.

Net earnings jumped to $1.06 billion, or 64 cents per share, in the second quarter ended April 30, from $559 million, or 33 cents per share, a year earlier, mostly helped by a one-time tax benefit of $975 million.

Excluding items, the company earned 48 cents per share, in line with Wall Street estimates.

Revenue rose 13.1 percent to $14 billion, above analysts’ average estimate of $13.57 billion.

Reporting by Munsif Vengattil in Bengaluru; Editing by Maju Samuel

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