November 26, 2019 / 9:52 PM / 11 days ago

HP Inc beats profit estimates on higher PC sales

(Reuters) - HP Inc (HPQ.N) on Tuesday posted quarterly earnings above analysts’ estimates as higher sales of personal computers and workstations helped counter weakness in its printer business.

FILE PHOTO: A screen displays the logo for HP Inc. at the New York Stock Exchange (NYSE) in New York, U.S., November 18, 2019. REUTERS/Brendan McDermid

Revenue from its personal systems unit, which makes notebooks and laptops, rose 3.6% to $10.43 billion in the fourth quarter, beating estimates of $10.29 billion.

HP is the second-biggest PC maker after China’s Lenovo Group Ltd. (0992.HK), with a 23.8% share of the market, according to data from research firm IDC.

The company’s upbeat results come as it tries to fend off a $33.5 billion takeover bid from Xerox Corp (XRX.N).

Earlier in the day, Xerox said it was planning to take its bid hostile after the personal computer maker refused to open its books for due diligence before a deadline.

Sales from HP’s printer division, however, fell 6% to $4.98 billion.

Total revenue rose marginally to $15.41 billion, above analysts’ expectations of $15.25 billion, according to IBES data from Refinitiv.

Net income fell to $388 million, or 26 cents per share, in the quarter ended Oct. 31 from $1.45 billion, or 91 cents per share, a year earlier.

Excluding items, HP earned 60 cents per share, above the average analyst estimate of 58 cents.

Shares of the company were up 2.2 % at $20.50 in extended trading.

Reporting by Chinmay Rautmare and Sanjana Shivdas in Bengaluru; Editing by Anil D'Silva

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