PC maker HP Inc. (NYSE: HPQ) reported an increase in second-quarter adjusted earnings, which also topped expectations. Revenues, meanwhile, remained broadly unchanged. The company also revised up its full-year earnings guidance and the stock gained 3% in Thursday’s after-hours trading session.
In the second quarter, there was a 10.4% annual increase in adjusted earnings to $0.53 per share. Earnings also came in above the estimates. Unadjusted profit, meanwhile, dropped to $782 million or $0.51 per share from $1.1 billion or $0.64 per share in the second quarter of last year.
Net revenues remained broadly flat at $14 billion during the three-month period but surpassed Wall Street’s prediction slightly.
Dion Weisler, HP’s CEO, said, “We delivered solid Q2 financial results, with strong non-GAAP EPS growing double-digits and coming in at the high end of our outlook. We continue to strike the right balance between driving results today and investing in innovation to deliver long term financial performance.”
Net revenues remained broadly flat at $14 billion during the three-month period but surpassed expectations
For the third quarter, HP expects unadjusted earnings to be in the range of $0.49 per share to $0.52 per share and adjusted earnings between $0.53 per share and $0.56 per share. For the whole of 2019, the company is looking for unadjusted earnings per share in the $2.04-$2.11 range and adjusted earnings in the range of $2.14 per share to $2.21 per share. The full-year guidance has been revised up from the earlier outlook.
The Personal Systems and Printing segments of HP continues to face the challenges of muted demand and competition. The rapid shift from personal computers to smartphones and tablets has added to the issue.
HP shares are yet to fully recover from the plunge that followed the dismal first-quarter report. They have lost 7% since the beginning of the year. The stock closed Thursday’s regular session slightly lower but rose sharply following the announcement.