Overall sales up but print down at HP

02 March 2022

Results

Lores: Q1 performance particularly strong across our key growth areas

HP Inc has reported overall revenue and profit growth, driven by its personal systems division, with revenue and profit in its printing segment both on the slide.

In its results for the three-month period to 31 January 2022, which were released on Monday (28 February), the manufacturer recorded total sales of $17bn (£12.8bn), up by 8.8% year-on-year and by 2.1% on the previous quarter.

Revenue in the firm’s printing division was down by 4% from $5.04bn in Q1 last year to $4.83bn, also representing a drop of 1% on the previous quarter.

Commercial hardware sales were up by 9% year-on-year to $1.04bn, from $957m a year ago, but down 5% on the previous quarter’s figure of $1.1bn.

Consumer hardware sales fell by 23% year-on-year to $724m, from $941m a year ago, and were flat on the last quarter. Sales of supplies, the largest part of the division by revenue, saw sales down 2% year-on-year to $3.07bn.

HP’s personal systems division, which comprises workstations, notebooks and desktops and other, was the main growth driver, with sales up by 15% year-on-year, from $10.6bn to $12.2bn, and by 3% on the previous quarter’s figure of $11.8bn.

The company’s Q1 net earnings climbed by 1.7% from $1.07bn, or 83 cents per share, a year ago to $1.09bn, or $1 per share.

Profits in the printing segment dropped by 11.9% year-on-year, from $998m to $879m, while profits in personal systems increased by 26.3% from $758m a year ago to $957m.

The company’s overall profits increased by 2.39% year-on-year in Q1, from $1.3bn to $1.33bn.

HP president and CEO Enrique Lores said: “We once again delivered strong top and bottom-line results with record revenue driven by strong demand and our leadership in hybrid.

“Our Q1 performance was particularly strong across our key growth areas that collectively grew double digits including gaming, peripherals, workforce solutions, consumer subscriptions, and industrial graphics and 3D. Our performance reflects progress against our strategy to build a stronger HP.”

HP Inc’s share price stood at $34.07 at the time of writing, having reached a high of $35.12 yesterday afternoon, its best result since the figures were published on Monday. On Friday it stood at $33.26p at its lowest point during the day.