HP names Lores CEO, reports solid Q3

HP said Enrique Lores, head of its printing unit, will take over as CEO for Dion Weisler. Separately, HP's third quarter earnings were better than expected.

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HP

HP named Enrique Lores president and CEO to succeed Dion Weisler Nov. 1. Weisler is stepping down due to a "family health mater" and returning to Australia.

Lores is currently president of HP's imaging, printing and solutions unit. Weisler will remain with the company through January 2020 to ease the transition and then serve on the board of directors until the next annual meeting.

Weisler has led HP through the split with Hewlett Packard Enterprise and delivered solid quarters, grew the 3D printing business and launched well-designed devices. Lores is a 30 year veteran of HP and led the separation with HPE.

On a conference call with analysts, Weisler said stepping down was "among the hardest choices I've every had to make," but added that HP has a deep bench. Lores, a former intern, said HP is well positioned to grow digital manufacturing and hit other growth areas. He added: 

Our end objective is to create a more digitally enabled, customer-centric organization. It's critical that we do some because the needs of our customers are rapidly changing, and we must become a more agile organization that is framers to fully capitalize on the opportunities ahead.

Separately, HP reported its third quarter results. The company reported third quarter net income of $1.2 billion, or 78 cents a share, on revenue of $14.6 billion, flat with a year ago. Non-GAAP earnings were 58 cents a share.

Wall Street was expecting HP non-GAAP third quarter earnings of 55 cents a share on revenue of $14.61 billion.

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HP's PC unit delivered revenue growth of 3% as commercial revenue gains of 10% were offset by a decrease of 11% in consumer units. Desktop units were up 11% and notebooks up 2%.

Printing revenue fell 5% from a year ago with hardware units down 9% and supplies sales down 7%.

As for the outlook, HP said it is expecting fourth quarter non-GAAP earnings of 55 cents a share to 59 cents a share. For fiscal 2019, HP is projecting non-GAAP earnings of $2.18 a share to $2.22 a share. The non-GAAP results exclude charges related to restructuring, acquisitions and other expenses.