Higher PC sales boost HP's quarterly profit

HP, which houses the hardware business of former Hewlett-Packard Co., reported a slightly higher-than-expected quarterly profit as it sold more personal computers.

Revenue from HP's personal systems unit, which sells notebooks, desktops and workstations, rose 12 per cent to US$8.40 billion in the third quarter ended July 31. Notebook sales increased 16.4 per cent, offsetting a dip in desktop sales.

The Palo Alto, California-based company forecast full-year earnings per share of US$1.63-US$1.66 compared with analysts' estimate of US$1.64, according to Thomson Reuters I/B/E/S.

The company, which bought Samsung Electronics’ printer business in September, said that revenue from its printer and copier business rose 6.2 per cent to US$4.70 billion in the reported quarter.

However, net earnings from continuing operations fell to US$696 million, or 41 cents per share, from US$843 million, or 49 cents per share.

Total revenue rose 10 per cent to US$13.1 billion, beating analysts' average estimate of US$12.31 billion.

Excluding items, the company earned 43 cents per share. Analysts on average expected earnings of 42 cents.

Shares of HP, which have gained 27 per cent since the start of the year, were down marginally in after-hours trading on 23 August.

(Reporting by Anirban Paul in Bengaluru; Editing by Martina D'Couto)