HP CEO Dion Weisler Wednesday said the company is "out-executing" competitors resulting in "breakthrough" quarterly results that mark the first time in six years HP has seen both printer and personal systems sales growth in the same quarter.
"We are out executing the market," Weisler told CRN in an interview after the company delivered better-than-expected results, with 10 percent growth in the PC business and 2 percent growth in the printer business. "We are doing that playing our own game. We are segmenting the market, figuring out where we want to win, and how we are going to win, and how we are going to do that together with the channel."
Overall HP reported adjusted earnings of 40 cents per share on a 7 percent increase in sales to $12.4 billion for its second fiscal quarter ended April 30. Wall Street analysts were expecting adjusted earnings of 39 cents per share on sales of $11.96 billion, according to Thomson Reuters.
As a result of the "breakthrough" results, HP raised its earnings guidance for the current fiscal year to a range of $1.59 to $1.66 per share, up from a prior range of $1.55 to $1.65.
HP shares were up $0.58 (3.0%) to $19.59 in after-hours trading.
Weisler told analysts that his confidence is increasing quarter after quarter as the company "embraces" change and turns it into opportunity. "It was a breakthrough quarter for us delivering growth in both segments – printing and personal systems – the first time since fiscal year 2010," he said. "We are taking profitable share. We are out executing our competitors and delivering some of the best innovation this company has ever seen."
HP's personal systems business was up 10 percent for the quarter with sales of $7.66 billion compared with $6.99 billion in the year-ago quarter.
The bigger surprise was the printing business which was up 2 percent to $4.74 billion compared with $4.63 billion in the year-ago quarter. With all important printing supplies growth of 2 percent in the quarter, the operating margin in the printing business was 17.4 percent, up from 16 percent in the preceding quarter.
"The print business hit it out of the park on every single dimension," said Weisler. "Overall revenue was up 2 percent but hardware revenue was up 7 percent, supplies revenue was up 2 percent. It has been a long time since we have had supplies revenue up … Market share was up. Operating profit was up. It was kind of Up! Up! Up! Up! Up! The channel plays a big role in that."