Shares tumbled 5% in aftermarket hours on Thursday.
Net revenue of $14.6 billion was relatively flat compared to
the same period last year, and in line with estimates. Sales grew 2% in
constant currency.
On a GAAP basis, net income rose 34% to $1.2 billion while EPS grew 44% to $0.78. Adjusted net income increased 4.8% to $880 million while EPS improved 11.5% to $0.58. Analysts had forecast adjusted EPS of $0.55.
During the quarter, Personal Systems net revenue grew 3% year-over-year on a reported basis and 6% in constant currency. Commercial net revenue rose 10% while Consumer net revenue fell 11%. Total units increased 5% with a 2% increase in Notebook units and an 11% growth in Desktop units.
Printing net revenue declined 5% year-over-year both on a reported basis and in constant currency. Total hardware units decreased 9%, with a 4% decline in Commercial hardware units and a 10% drop in Consumer hardware units. Supplies net revenue was down 7% both on a reported and constant currency basis.
For the fourth quarter of 2019, HP estimates GAAP EPS to be $0.51-0.55 and adjusted EPS to be $0.55-0.59. For fiscal-year 2019, HP raised its outlook for GAAP EPS to a range of $2.31-2.35 and adjusted EPS to a range of $2.18-2.22. This compares to the previous ranges for GAAP EPS of $2.04-2.11 and adjusted EPS of $2.14-2.21.
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