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Rising commercial PC sales help HP beat earnings and revenue targets - SiliconANGLE

May 30, 2024 - siliconangle.com
HP Inc. reported a rise in earnings and revenue, beating Wall Street's expectations, driven by a recovery in the global PC market and the emergence of AI PCs. The company reported earnings of 82 cents per share, slightly ahead of the forecasted 81 cents, and revenue of $12.8 billion, surpassing the target of $12.6 billion. HP's CEO, Enrique Lores, anticipates that AI PCs will account for around 10% of the company's computer sales in the second half of the fiscal year, and expects AI PCs to represent between 40% and 50% of total PC shipments three years after launch.

Commercial PC sales rose 6% from a year ago to $6.2 billion, with shipments increasing by 12%. However, consumer PC sales fell 3% to $2.2 billion, and the printing business saw a 12% drop in revenue to $4.4 billion. Lores attributes the decline in the printing business to a lack of investment on the commercial side but expects the segment to stabilize in the second half of the fiscal year.

Key takeaways:

  • HP Inc. reported a decent earnings and revenue beat, with earnings before certain costs such as stock compensation of 82 cents per share, slightly ahead of Wall Street’s forecast of 81 cents.
  • HP's commercial PC sales rose 6% from a year ago to $6.2 billion, with shipments rising by 12%, while sales of consumer PCs fell 3% to $2.2 billion.
  • HP CEO Enrique Lores predicts that AI PCs will represent between 40% and 50% of total PC shipments three years after launch, and that the adoption of AI PCs will start slowly at first.
  • HP's printing business saw a 12% drop in revenue from a year earlier to $4.4 billion, with shipments plunging 17%, which Lores attributes to a lack of investment on the commercial side.
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