John McIntyresqby John McIntyre

Printer and PC giant HP Inc. reported its Q3 financials August 23 and there was mostly good news to announce. Our reading of the tea leaves indicates that PCs are gaining ground and printers are largely holding their own, although it is a little more complex than that.      

  • Total revenues exceeded $13B for the quarter – an 11 percent year-over-year increase in constant currency (cc)
  • $8.4B in revenues were brought in by the PC (Personal Systems) group – up a healthy 13 percent year-over-year (cc) in a category that has seen revenues eroding for a while – though IDC did report a relative uptick in PC activity in both Q1 and Q2 this year.
  • Printing delivered revenues of $6.98B, up 7 percent year-over-year (cc) – also in a category that has seen eroding revenues from many major makers for several years.
  • Non-GAAP operating income was just over $1B, 7.7 percent of revenues, down $109M and 1.7 percent from Q3 last year – 72 percent of which came from Printing
  • All three HP regional operations delivered revenue growth:
    • Americas up 8 percent year-over-year (cc)
    • EMEA up 10 percent year-over-year (cc)
    • APJ up an impressive 15 percent year-over-year (cc)
    • Non-U.S. net revenue = 61 percent of total net revenue
  • GAAP diluted net earnings per share from continuing operations and net earnings per share met or beat previous guidance.
  • The firm generated $1.7 billion in free cash flow and returned $524 million to shareholders in the form of share repurchases and dividends.

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