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