HP smashes expectations with bumper PC sales

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HP smashes expectations with bumper PC sales

HP Inc reported better-than-expected quarterly results and raised its full-year adjusted profit forecast on Thursday as it benefits from strong growth in its personal systems business and its acquisition of Samsung's printer business.

Shares of the company, formed out of the 2015 split of Hewlett-Packard Co, were volatile in after-market trading and were last down 1.4 percent in low volumes. They had gained 16.6 percent this year.

HP's personal systems business, which includes desktops and notebooks and accounts for more than 60 percent of total revenue, rose 12 percent to US$9.4 billion, beating analysts' average estimate of US$9.06 billion, according to Thomson Reuters I/B/E/S.

The company had the top position in worldwide PC shipments in the second quarter with a 23.9 percent market share, according to research firm IDC's data.

HP, which completed the acquisition of Samsung Electronics Co's printer business last year, said revenue from its printing business rose about 11 percent to US$5.19 billion, above analysts' estimate of US$5.11 billion.

The company raised its forecast for full-year adjusted profit to between US$2 and US$2.03 per share, from US$1.97 and US$2.02 per share earlier. Analysts on average were expecting US$2, according to Thomson Reuters I/B/E/S.

Excluding items, HP reported a profit of 52 cents per share for the third quarter ended 31 July, one cent above the average analyst estimate.

Net revenue rose about 12 percent to US$14.59 billion. Analysts on an average had expected revenue of US$14.27 billion.

(Reporting by Akanksha Rana in Bengaluru; Editing by Sriraj Kalluvila)

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