HP's Q2 revenue remains flat with drop in PC units and printers sold

While sales of desktop units were up slightly year-over-year, HP still saw an overall drop in the number of PCs sold due to the decline in Notebooks units.

hppcs.png

HP published its second quarter financial report on Thursday, with results slightly above market expectations. Revenue in Q2 remained effectively flat year-over-year, even as unit sales declined in both the personal systems and printer segments.

Q2 non-GAAP earnings were 53 cents per share on revenue of $14 billion.

Analysts were expecting earnings of 51 cents per share on revenue of $13.97 billion.

"We delivered solid Q2 financial results, with strong non-GAAP EPS growing double-digits and coming in at the high end of our outlook," CEO Dion Weisler said in a statement. "We continue to strike the right balance between driving results today and investing in innovation to deliver long term financial performance."

Personal Systems net revenue was up 2 percent year-over-year to $8.92 billion, and total units were down 1 percent. Notebooks brought in $5.1 billion in revenue (down 1 percent) with units down 5 percent. Desktops revenue was $2.9 billion (up 7 percent), and units were up 6 percent. 

hpprinters.png

In a conference call Thursday, Weisler said that HP is setting its product mixed apart in personal systems with innovation, design and "disciplined investments in solutions and demand generation."

"We continue to drive profitable growth through a relentless focus on customer insights and by aggressively pursuing targeted opportunities to go after the heat in the market," he said. 

Printing net revenue was down 2 percent year-over-year. Total hardware units were down 4 percent with Commercial hardware units down 3 percent and Consumer hardware units down 4 percent. Supplies net revenue was down 3 percent.

For the fiscal 2019 third quarter, HP expects a non-GAAP diluted net EPS in the range of 53 cents to 56 cents.

For fiscal 2019, HP expects a non-GAAP diluted net EPS in the range of $2.14 to $2.21.