HP Inc reports Q2 results that beat revenue estimates with a 13% yr/yr growth and met on EPS. Regionally, EMEA was up 21%, but the company is also looking to build out its "x-as-a-service" approach in printing as well as PCs, and that depends on regional drive.
- Personal Systems: Segment revenue was up 14% yr/yr with a 3.8% operating margin. Commercial revenue grew 16% and Consumer grew 10%. Total units were up 7% with both Notebooks and Desktops matching that growth.
- Printing: Segment revenue grew 11% with a 16% operating margin. Total hardware units were up 13% with Commercial up 88% and Consumer up 4%. Supplies revenue grew 8%.
Dion Weisler (pictured) - President and Chief Executive Officer: "HP continued to outperform the PC market with broad-based growth across all segments and product categories, not only are we seeing strong growth in notebooks, this is also the third consecutive quarter of double-digit desktop growth."
Headwinds include raw material costs with increases in resin, plastics as well as DRAM. Resins and plastics are largely up as a result of oil prices increasing.
"We are very focused on managed print services. There is no doubt the business model is shifting even in the traditional A4 space. It’s moving from transactional to contractual and that’s happening at a different pace in every country, but it is a mega-trend that we certainly want to be out in front of with managed print services. And I think we have really mastered the art of how to manage this for a customer and the pipeline not only for managed print services, but device-as-a-service is really strong, so PC-as-a-service and increasingly customers are looking to have everything both at Print and Personal Systems and workstations and even 3D printing in the future as a service," he told analysts.
