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HP Inc tops revenue estimates on growth in personal systems business

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Reuters
Last Updated : Nov 30 2018 | 4:41 AM IST

By Akanksha Rana

(Reuters) - HP Inc's quarterly revenue beat analysts' estimates on Thursday, driven by growth in its personal systems that sells notebooks and desktops and the acquisition of Samsung's printer business.

Shares of HP Inc, 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 $10.06 billion, beating analysts' average estimate of $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 Palo Alto, California-based 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 International Data Corp's data https://www.idc.com/getdoc.jsp?containerId=prUS44385418.

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

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

HP Inc 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 $1.45 billion, or 91 cents per share, in the fourth quarter ended Oct. 31, from $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 $586 million, or 37 cents per share, related to restructuring and other charges and acquisition-related charges.

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

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

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First Published: Nov 30 2018 | 4:13 AM IST

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