HP reports falling sales but rising printing profits

HP said its third-quarter sales fell 4% year-on-year and 11% from the previous quarter, with profits also down overall but up in its printing segment.

In results released yesterday (August 30), the manufacturer recorded total sales of $14.7bn (£12.6bn) for the three-month period to July 31, 2022, down from 15.3 billion at the same stage a year ago.

Revenue for the company’s printing division (including desktop, consumer and graphics) fell 6% year over year, from $4.88 billion to $4.58 billion. billions of dollars. It was down 8% from the previous quarter’s figure of $4.96 billion.

HP’s commercial hardware sales (which include graphics solutions and 3D printing) were down 3% year over year, from $1.07 billion to $1.04 billion. It was also down 1% from the previous quarter.

Consumer hardware sales bucked the 1% year-on-year uptrend to $725m from $720m, but were down 8% from the $790m figure in the prior quarter. Third-quarter supplies sales, the division’s largest portion by revenue, were down 9% year-on-year to $2.81 billion and down 10% from 3, $13 billion from the previous quarter.

HP’s personal systems division, its largest operation comprising workstations, laptops, desktops and more, saw its net sales fall 3% year-on-year to $10.1 billion. dollars and 13% from the previous quarter’s figure of $11.5 billion.

The company’s third-quarter net income fell from $1.11 billion, or 92 cents per share, a year ago to $1.12 billion, or $1.08 per share.

Profits in its printing segment jumped 6.3% year-on-year to $911 million from $857 million, but that was down from $958 million in the second quarter. Profits from personal systems, meanwhile, fell 20%, from $869 million to $695 million. It was also down from the previous quarter, when a figure of $798 million was reported.

HP’s overall profits fell 9.4% year-over-year from $1.33 billion to $1.2 billion, and that was also down from 1, $24 billion recorded in the second quarter.

HP President and CEO Enrique Lores said, “Disciplined pricing and cost management, combined with continued momentum in our core growth businesses, has enabled us to deliver strong non-compliant EPS growth. to GAAP while returning $1.3 billion to shareholders in the third quarter.

“We are taking clear steps to mitigate near-term market headwinds and further strengthen our business going forward. I am confident in our ability to execute on our priorities to drive long-term sustainable growth and value creation.

HP Inc stock price closed at $31.10 yesterday, down 1.36% from Monday’s close.