HP’s quarterly revenue has beat analysts' estimates, driven by growth in its personal systems business that sells notebooks and desktops and the acquisition of Samsung's printer business.
Shares of HP, which houses the hardware business of former Hewlett-Packard, were marginally up in extended trading.
The personal systems business, which accounts for more than 60 per cent of HP's total revenue, rose 11 per cent to US$10.06 billion, beating analysts' average estimate of US$9.78 billion, according to data from Refinitiv.
"On the PC side, we are impressed, particularly amidst a backdrop of reported 'CPU shortages' that are already well known," said David Ryzhik, an analyst with Susquehanna Financial Group.
The company had the second position in worldwide PC shipments in the third quarter with a 22.8 per cent market share, down from 23.9 per cent in the preceding quarter, according to research firm IDC.
HP said revenue from its printing business rose 9.1 per cent to US$5.30 billion, slightly short of analysts' estimate of US$5.31 billion.
“Our results once again demonstrate HP’s consistent performance,” said Dion Weisler, president and CEO of HP. “These results reflect our continued innovation across the portfolio and sharp execution across segments and regions as we position HP for continued long-term sustainable growth.”
The company completed the acquisition of Samsung Electronics’ printer business for US$1.05 billion in November 2017 as a part of its efforts to strengthen the sluggish printer and copier business.
HP said, in a post earnings call with analysts, it has not considered any impact from unannounced tariffs or any significant demand changes that may result from an increase in geopolitical uncertainties.
The Palo Alto, California-based company said it would consider price increases to respond to tariffs.
"We are working through a variety of mitigation items on the tariffs, pricing included to be one of the ways we mitigate," said Steve Fieler, CFO of HP during the call.
The vendor forecast current-quarter adjusted profit of 50 cents to 53 cents per share. Analysts expected a profit of 52 cents per share.
Meanwhile, net earnings rose to US$1.45 billion, or 91 cents per share, in the fourth quarter ended 31 October, from US$660 million, or 39 cents per share, a year earlier. Excluding items, the company earned 54 cents per share, in line with average analyst estimates.
The company said its fourth-quarter adjusted earnings and profit exclude after-tax adjustments of US$586 million, or 37 cents per share, related to restructuring and other charges and acquisition-related charges.
Net revenue rose 10.3 per cent US$15.37 billion. Analysts on an average had expected revenue of US$15.1 billion.
(Reporting by Akanksha Rana in Bengaluru; Editing by Shailesh Kuber and Leslie Adler)