August 28, 2020
HP reports printing revenues down 20% with consumer hardware sales up 3%, but supplies revenues down 19% and reports strong momentum in consumer, including Instant Ink, benefitting from working from home.
HP Inc. and its subsidiaries (“HP”) announced fiscal 2020 third quarter net revenue of $14.3 billion (€12.01 billion), down 2.1% from the prior-year period.
Printing net revenue was down 20% year-over-year, at $3.9 billion (€3.27 billion) with a 12.2% operating margin of $480 million (€403 million). Total hardware units were down 2% with commercial hardware units down 32% and consumer hardware units up 3%. Supplies net revenue was down 19% year-over-year. HP said that there was a “strong momentum in consumer, including Instant Ink, benefitting from working from home” and that office and graphics usage did see an improvement through the quarter from the impacts of COVID-19.
Personal Systems net revenue was up 7% year-over-year with a 5.5% operating margin. Commercial net revenue decreased 6% and Consumer net revenue increased 42%. Total units were up 11% with Notebooks units up 32% and Desktops units down 30%.
“Our strong Q3 results and solid beat for the quarter, in the face of unprecedented uncertainty, reflects the agility of our teams and the strength of our portfolio,” said Enrique Lores, HP’s President and CEO. “We’re leveraging our leadership across consumer and commercial markets to capitalise on opportunities – from the essential role of the PC in an era of remote work and school to the rise of subscription-based business models to enable greater flexibility. Our diverse portfolio and disciplined execution are powering our performance and we’re well positioned to drive continued value creation.”
The third quarter returned $1.2 billion (€1 billion) to shareholders in the form of share repurchases and dividends.
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