Small Revenue Gain for HP’s Fourth Quarter

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On November 22nd, HP Inc. reported results for its fourth-quarter 2016, with revenue up  2 percent. Fourth-quarter  earnings per share was $0.30, above the previously provided outlook of $0.22 to $0.25 per share.

On the printer side, revenues were down 8 percent, with revenues from supplies down 12 percent. However, printer hardware revenues were up 1 percent.

Fourth-Quarter Segment Results

  • Personal Systems net revenue was up 4 percent year-over-year (up 5 percent in constant currency) with a 4.3 percent operating margin. Commercial revenue increased 3 percent and Consumer revenue increased 7 percent. Total units were up 5 percent with Notebooks units up 9 percent and Desktops units up 1 percent.
  • Printing net revenue was down 8 percent year-over-year (down 6 percent in constant currency) with a 14.0 percent operating margin. Total hardware units were up 1 percent from the prior-year period, with Commercial hardware units up 10 percent and Consumer hardware units down 3 percent. Supplies net revenue was down 12 percent (down 10 percent in constant currency).

Fiscal Year 2016 Results

Fiscal-year year 2016 net earnings per share (EPS) was $1.53, above HP’s previously provided outlook of $1.46 to $1.49 per share. Fiscal-year 2016 net revenue totaled $48.2 billion, down 6 percent (down 2 percent in constant currency) from the prior-year period.

Fiscal-year 2016 net revenue were $48.2 billion, down 6 percent (down 2 percent in constant currency) from the prior-year period.

Fourth quarter earnings per share were $0.30, down from $0.83 in the prior-year period and above the previously provided outlook of $0.22 to $0.25.

HP Inc. President and CEO Dion Weisler commented: “We delivered on our full year financial commitments and executed well on our strategy to protect our core, drive growth and invest in our future all while taking cost out of the business. .As we’ve proved quarter over quarter, we are confident in our abilities to execute and deliver, while making business decisions focused on the long-term success for the company.”

Outlook

For the fiscal 2017 first quarter, HP estimates earnings per share  to be in the range of $0.33 to $0.36 share.

For its fiscal 2017 year, HP estimates earnings per share  to be in the range of $1.47 to $1.57.

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