HP tops Q4 estimates with growth in commercial systems revenue
HP published its fourth quarter financial results on Tuesday, slightly beating market expectations.
The PC maker's non-GAAP diluted net EPS for Q4 came to 60 cents, with revenue of $15.4 billion, up 0.3 percent from the prior-year period.
Wall Street was looking for earnings of 58 cents per share on revenue of $15.27 billion.
For the full fiscal 2019, HP reported a non-GAAP diluted net EPS of $2.24 on revenue of $58.8 billion, up 0.5 percent from the prior-year period
"2019 marks our third consecutive year of revenue, non-GAAP operating profit and non-GAAP earnings growth, with non-GAAP EPS up 11% and strong free cash flow of $4 billion," CEO Enrique Lores said in a statement. "We delivered an excellent Q4, with 11% non-GAAP EPS growth. Our strategy is working, and we are confident in our business heading into FY20."
Personal Systems net revenue in Q4 came to $10.43 billion, up 4 percent year-over-year. Commercial net revenue increased 8 percent and Consumer net revenue decreased 4 percent. Total units were up 8 percent, with Notebooks units up 9 percent and Desktops units up 5 percent.
Q4 Printing net revenue was $4.98 billion, down 6 percent year-over year. Total hardware units were down 9 percent with Commercial hardware units down 1 percent and Consumer hardware units down 10 percent. Supplies net revenue was down 7 percent.
For Q1 fiscal 2020, HP estimates non-GAAP diluted net EPS to be in the range of 53 cents to 56 cents.
For fiscal 2020, HP estimates non-GAAP diluted net EPS to be in the range of $2.24 to $2.32.
Meanwhile, HP on Tuesday received a letter from Xerox, warning HP that Xerox plans to engage directly with HP stakeholders to solicit their support for a takeover. In the letter, Xerox claims that since its proposed acquisition three weeks ago, "HP continues to obfuscate and make misleading statements."
The letter adds, "Your refusal to engage in mutual due diligence with Xerox defies logic."
Last week, HP announced its board of directors unanimously rejected Xerox's proposal.