HP Q3 sales up on 2020 but down on Q2

HP has reported that its sales for Q3 are up year-on-year, but down on the previous quarter. The manufacturer recorded total sales of USD 15.3-bn for the three-month period to 31 July 2021, up by 7% year-on-year but down by 3.8% on the Q2 figure of USD 15.9-bn. Revenue in the firm’s printing division (including office, consumer and graphics) was up 24% year-on-year, from USD 3.93-bn in Q3 last year to USD 4.88-bn. Sales were down 8%, however, on the previous quarter’s figure of USD 5.32-bn.

03 Sep 2021 | By PrintWeek Team

Lores: The hybrid world is accelerating trends in our segments

HP’s commercial hardware sales (which includes graphics solutions and 3D printing) jumped by 46% year-on-year from USD 732-m to USD 1.07-bn, though this was down 1% on the USD 1.09-bn figure recorded in the previous quarter. Consumer hardware sales were up by 15% year-on-year, from USD 628-m to USD 720-m, but down on the previous quarter’s figure of USD 901-m. Q3 sales of supplies, the largest part of the division by revenue, were up 20% year-on-year to USD 3.09-bn but down 7% on the previous quarter’s figure of USD 3.34-bn.

HP’s personal systems division, it's largest operation comprising workstations, notebooks, desktops and other, saw net revenue remain flat year-on-year at USD 10.4-bn but down 1% on the previous quarter’s figure of USD 10.6-bn.

Profits in the printing segment leapt by 78.5% year-on-year, from USD 480-m to USD 857-m, but this was down on the USD 951-m recorded in Q2. Profits in personal systems, meanwhile, jumped by 52.5% from USD 570-m to USD 869-m. This was also up on the previous quarter, where a figure of USD 710-m was reported. The company’s overall profits climbed by 76.6% year-on-year, from USD 751-m to USD 1.33-bn, although this was down slightly on the USD 1.34-bn figure recorded in Q2.

In a webcast held following the publication of the results on 26 August, HP president and chief executive Enrique Lores said, “The hybrid world taking shape is expanding our addressable market and creating new opportunities to drive profitable growth. We have already started to capitalise on this and have a long runway ahead. This is evident in our Q3 performance. We delivered another quarter of top and bottom-line growth with EPS [earnings per share] growing substantially faster than revenue. This reflects continued progress against our strategic priorities and strong and sustained demand for our products and services.”

He said the company is also continuing “to ship as much product as we can, while navigating a complex operational environment”. “We are managing through component shortages, Covid-related factory lockdowns in South East Asia, and congested ports and transportation disruptions. Even under these conditions we delivered solid financial results. We are performing while transforming our business models and service offerings to capitalise on emerging growth opportunities. We have continued to make progress, reducing our fixed cost structure, evolving our business model, and creating new growth businesses.”

(Courtesy: PrintWeek.com)