In results released earlier this week, the manufacturer recorded total sales of $13.5bn (£10.24bn) for the three-month period to 31 July 2024, up 2.4% on the $13.2bn reported at the same stage a year ago.
Net revenue in the firm’s Printing division was down 3% year-on-year, to $4.14bn, with a 17.3% operating margin.
HP said it realigned its business unit financial reporting more closely with its customer market segmentation, as of its first quarter of fiscal 2024. The realignment resulted in the transfer of the net revenues of LaserJet printers from the Consumer Printing category to Commercial Printing.
HP said it reflected this change to its business unit information in prior reporting periods on an “as-if basis”, which resulted in the reclassification of net revenues from Consumer Printing to Commercial Printing.
The reporting change, the company added, had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings, or net earnings per share.
In Q3, HP’s Consumer Printing net revenue was up 2% year-on-year to $293m and Commercial Printing net revenue was down 5% at $1.15bn. Supplies net revenue was down 2% year-on-year to $2.7bn.
Total hardware units were down 2%, with Consumer Printing units flat and Commercial Printing units down 4%.
HP’s personal systems division saw sales climb by 5% year-on-year to $9.37bn.
The company’s Q3 net earnings dropped from $766m, or 76 cents per share, a year ago to $640m, or 65 cents per share.
Profits in its printing segment fell by 9.95% year-on-year, from $794m to $715m, while profits in personal systems climbed by 1.18%, from $592m in Q3 last year to $599m.
HP’s overall profits dropped by 11.6% year-on-year, from $936m to $827m.
“We are pleased with our return to revenue growth and proud of the innovations delivered in the quarter, including the launch of our next-generation AI PC lineup,” said Enrique Lores, president and CEO at HP Inc.
“We remain focused on our strategic plan and will prioritize opportunities that drive long-term profitable growth, while taking decisive action to navigate a dynamic environment.”
HP Inc’s share price climbed after the results were released on Wednesday (28 August), opening nearly 1.5% higher yesterday at $36.68. It dipped back slightly during the day and closed at $35.46 (52-week high: $39.52, low: $25.22).
