HP tops revenue estimates with PC sales growth

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HP tops revenue estimates with PC sales growth

HP's quarterly revenue beat analysts' estimates last week, driven by growth in its personal systems that sells notebooks and desktops and the acquisition of Samsung's printer business.

Shares of HP, which houses the hardware business of former Hewlett-Packard Co, were marginally up in extended trading.

The personal systems business, which accounts for more than 60 percent of HP Inc's total revenue, rose 11 percent to US$10.06 billion, beating analysts' average estimate of US$9.78 billion, according to IBES data from Refinitiv.

"On the PC side, we are impressed, particularly amidst a backdrop of reported 'CPU shortages' that are already well-known," said David Ryzhik, an analyst with Susquehanna Financial Group.

The company had the second position in worldwide PC shipments in the third quarter with a 22.8 percent market share, down from 23.9 percent in the preceding quarter, according to research firm IDC.

HP said revenue from its printing business rose 9.1 percent to US$5.30 billion, falling slightly short of analysts' estimate of US$5.31 billion.

The company completed the acquisition of Samsung Electronics' printer business for US$1.05 billion in November last year as a part of its efforts to strengthen the sluggish printer and copier business.

HP said, in a post earnings call with analysts, it has not considered any impact from unannounced tariffs or any significant demand changes that may result from an increase in geopolitical uncertainties.

The company also forecast current-quarter adjusted profit between 50 cents to 53 cents per share. Analysts expect a profit of 52 cents per share.

Net earnings rose to US$1.45 billion, or 91 cents per share, in the fourth quarter ended 31 October, from US$660 million, or 39 cents per share, a year earlier.

Excluding items, the company earned 54 cents per share, in line with average analyst estimates.

The company said its fourth quarter adjusted earnings and profit exclude after-tax adjustments of US$586 million, or 37 cents per share, related to restructuring and other charges and acquisition-related charges.

Net revenue rose 10.3 percent US$15.37 billion. Analysts on an average had expected the company to report a revenue of US$15.1 billion.

(Reporting by Akanksha Rana in Bengaluru; Editing by Shailesh Kuber)

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