Video: HP Spectre x360 13 review
HP continues to fare well in a rocky PC market as it grabs share and posts double-digit growth.
The company reported fiscal second quarter earnings of $1.1 billion, or 64 cents a share, on revenue of $14 billion, up 13 percent from a year ago. Non-GAAP earnings for the quarter were 48 cents a share.
Wall Street was expecting HP to report second quarter non-GAAP earnings of 48 cents a share on revenue of $13.57 billion.
Read also: HP ZBook x2 G4 Detachable Workstation review: A hybrid for creatives | HP EliteOne 1000: A 34-inch curved all-in-one monster | HP launches sanitizable healthcare notebook, all-in-one PC, and display | CNET: Best laptops for 2020
HP's non-GAAP results exclude restructuring, acquisitions and other charges as well as a tax gain.
CEO Dion Weisler said the company is focused on innovation and operational efficiencies. The company generated $937 million of free cash flow in the second quarter. The company is the top PC maker, according to IDC data.
By unit, personal systems revenue was up 14 percent in the second quarter with commercial revenue up 16 percent and consumer up 10 percent. Printing revenue was up 11 percent from a year ago in the second quarter with commercial gains driving the business. Supplies revenue in the second quarter was up 8 percent. The printing unit got a boost from the acquisition of Samsung's printer unit.
By the numbers:
- Notebook revenue was up 15 percent from a year ago with units up 7 percent. That stat indicates that HP was able to boost average selling prices in the second quarter.
- Desktop revenue was up 16 percent in the second quarter with units up 7 percent.
- Commercial revenue was 23 percent of the printer unit's sales in the second quarter with consumer at 12 percent. Supplies are 65 percent of revenue.
As for the outlook, HP is projecting non-GAAP earnings of 49 cents a share to 52 cents a share. For fiscal 2018, HP is projecting non-GAAP earnings of $1.97 a share to $2.02 a share.
Separately, HP named Steve Fieler CFO replacing Cathie Lesjak, who will become interim chief operating officer. Lesjak will be operating chief until her retirement in early 2019. Fieler is a 11-year HP veteran.