HP delivers solid Q1 as notebook units surge

The company's earnings were better than expected and HP's notebooks and personal systems sold well.

HP delivered a solid first quarter as personal systems revenue was up 10 percent from a year ago as the company saw notebook units surge 12 percent. HP also booked its first 3D printer revenue.

The PC and printer maker reported fiscal first quarter earnings of $600 million, or 36 cents a share, on revenue of $12.7 billion, up 4 percent. Non-GAAP earnings were 38 cents a share, a penny better than Wall Street estimates.

As for the outlook, HP projected non-GAAP earnings of 37 cents a share to 40 cents a share for the second quarter. Wall Street was expecting non-GAAP earnings of 39 cents a share.

HP said that personal systems revenue was up 10 percent with commercial sales increasing 7 percent. Consumer revenue for HP personal systems was up 15 percent.

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Printing revenue fell 3 percent from a year ago and supplies sales fell by the same clip.

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CEO Dion Weisler said that HP is "confident in our ability to manage our business and deliver our FY17 financial commitments."

Patrick Moorhead, principal of Moor Insights, said:

Consolidation among the "big three" PC makers continues as it has the last five years and HP gets a boost from this. HP Inc. embraced the premium Windows PC space and this continues to pay off in consumer and commercial markets. HP placed an emphasis on design and software experience. HP has done incremental work to extend the experience to the channel, so the premium PC products connects with a premium channel experience. This has been a 4 year journey so far.
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