(Reuters) – the HP’s, Inc., HPQ.N) on Tuesday posted quarterly earnings above analysts ‘ estimates, as higher sales in personal computers and workstations helped to counter the weakness in the printer business.
FILE PHOTO: A screen displays the logo of HP Inc. on the New York Stock Exchange (NYSE) in New York, New York, USA, 18 November, 2019 at the latest. REUTERS/Brendan McDermid
Revenue from its personal systems unit which makes pcs notebooks as well as laptops, has increased 3.6% to $10.43 billion for the quarter, beating the estimates of $10.29 billion.
HP is the second-largest PC manufacturer, after china’s Lenovo Group Ltd. (0992.HK), with a 23.8% share of the market, according to data from research firm IDC.
The company is optimistic that results will be released when it’s trying to make it out of the $33.5 billion takeover bid from Xerox Corp’s (XRX.(N).
Earlier in the day, Xerox had said that it was planning to make his bid hostile, after the personal-computer maker, declined to open its books for due diligence before a deadline.
The sale of HP’s printer division, however, decreased by 6% to $4.98 billion.
Total revenue rose marginally, to $15.41 billion, above analysts ‘ expectations of $15.25 billion, according to IBES data, Refinitiv.
Net profit fell to $388 million, or 26 cents a share, in the quarter that ended in Sep. 31, from $1.45 billion, or 91 cents a share, a year earlier.
Excluding items, HP earned 60 cents per share, which is higher than the average analyst estimate of 58 cents.
The company’s shares were up 2.2 % to $20.50 in extended trade.
Reporting Chinmay Rautmare and Sanjana Shivdas in Bengaluru; Editing by Anil D’silva