HP reports on mixed Q3

HP has reported that its sales for Q3 fell year-on-year but improved on the previous quarter.

08 Sep 2023 | By PrintWeek Team

Lores: hailed profitable PC market share

In results released earlier this week, the manufacturer recorded total sales of USD 13.2-bn for the three-month period to 31 July 2023, down 10% from the USD 14.6-bn reported at the same stage a year ago.

The quarter showed overall improvement, however, with sales 2% higher than the USD 12.9bn figure achieved in Q2.

Revenue in the firm’s printing division was down 7% year-on-year, from USD 4.58-bn to USD 4.26-bn. It was down by 10% on the previous quarter’s figure of USD 4.74-bn.

HP’s commercial printing revenue was USD 974-m, down 6% year-on-year and 11% on the previous quarter.

Consumer printing sales were also on the slide, down 28% year-on-year to USD 521-m, and also down 19% on the previous quarter.

Q3 sales of supplies dropped by 2% year-on-year to USD 2.77-bn. This figure was also 8% lower than the previous quarter.

HP’s personal systems division saw sales drop by 11% year-on-year to USD 8.93-bn, although this figure represented a 9% improvement on the previous quarter.

The company’s Q3 net earnings dropped from USD 1.12-bn, or USD 1.08 per share, a year ago to USD 766-m, or 76 cents per share.

Profits in its printing segment fell by 12.2% year-on-year, from USD 904-m to USD 794-m, while profits in personal systems also dropped by 12.2%, from USD 674-m in Q3 last year to USD 592-m.

HP’s overall profits dropped by 21% year-on-year, from USD 1.19-bn to USD 936m, although Q3 represented a major improvement on the USD 587-m it reported in Q2.

“We delivered a solid quarter of sequential growth, combining strong innovation with disciplined execution to gain profitable PC market share and achieve our non-GAAP EPS target,” said Enrique Lores, HP president and CEO. “While we expect another quarter of sequential growth in Q4, the external environment has not improved as quickly as anticipated and we are moderating our expectations as a result. We remain confident in our ability to drive long-term growth and value creation as we focus on the things we can control and make continued progress against our Future Ready plan.”

Separately, HP Indigo will be at the upcoming Labelexpo show in Brussels, where highlights will include the first European showcase for the HP Indigo V12 label press and the recently announced HP Indigo 200K digital press. The focus at the show will be end-to-end solutions and HP's Digital Pouch Factory.

In the US, HP will be showing its newest solvent ink, HP 2600, at packaging event Pack Expo in Las Vegas. It runs from 11-13 September, the same dates as Labelexpo.

The company said the ink is aimed at solving a variety of consumer and brand packaging and processing challenges “as well as addressing a broader industry push for more sustainable solutions” given that it has been designed with a goal to meet both current and future regulatory requirements.

HP’s Thermal Inkjet (TIJ) 108mm bulk printing tech for coding and marking on secondary packaging will also be featured on the show floor.

(Source: PrintWeek.com)