HP’s revenue growth has slipped for the fifth straight quarter
HP (HPQ) reported its second quarter of fiscal 2019 (quarter ended in April 2019) results on Thursday, May 23. The company’s revenue growth continued to slow down.
The PC-maker generated revenue of $14.04 billion during the quarter, growing 0.3% year-over-year, which represented the fifth consecutive quarter of slowdown for the company. However, its stock rose 2% in after-hours trading, as the company beat Wall Street estimates of $13.95 billion in revenue. The company posted a net profit of $782 million during the fiscal second quarter compared to a profit of $1.06 billion in the year-ago quarter when earnings were boosted by a one-time tax benefit.
HP’s desktop computer growth continues to impress amid grim industry backdrop
The company said that its revenue from desktop computers grew 7% YoY. Its personal-systems unit, which includes PC, tablets, and other devices grew 2% YoY. However, revenue from printers, supplies, and other related items fell 2% from the same period last year.
While these results seem dull, the company is leading in the PC segment, which has been sluggish for years now and continues to gain market share over the rest.
However, the company’s stock has declined by 12.4% in the past year as the company’s revenue growth has declined from 14.5% YoY during the first quarter 2018 to 0.3% YoY in the previous quarter.