HP reports mixed Q1 results, drop in notebook, desktop units sold

Personal Systems net revenue was up 2 percent year-over-year, even though total units sold declined.

HP published its first quarter financial results on Wednesday, with earnings in line with market estimates and revenues slightly missing expectations. 

Non-GAAP earnings came to 52 cents per share on revenue of $14.7 billion, up 1 percent from the prior-year period.

Wall Street was looking for earnings of 52 cents per share on revenue of $14.88 billion.

"We continued to drive top and bottom line growth in Q1 and are reaffirming our non-GAAP EPS and free cash flow financial outlook for the year," CEO Dion Weisler said in a statement. "We are benefitting from our market-leading portfolio and accelerating our transformation with momentum in services, solutions and 3D printing as we reinvent HP and position the business for long-term sustainable growth."

Personal Systems net revenue was up 2 percent year-over-year. Within that segment, commercial net revenue increased 3 percent and consumer net revenue increased 1 percent. Total units were down 3 percent, with Notebooks units down 1 percent and Desktops units down 8 percent.

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Printing net revenue was mostly flat year-over-year. Total hardware units were up 3 percent with commercial hardware units up 4 percent and consumer hardware units up 2 percent. Supplies net revenue was down 3 percent.

HP's net cash provided by operating activities in the first quarter was $900 million. The company generated $700 million of free cash flow in the first quarter.

In Q1, HP returned $1 billion to shareholders in the form of share repurchases and dividends.

For the fiscal 2019 second quarter, HP estimats a non-GAAP diluted net EPS in the range of 50 cents to 53 cents.