November 27, 2019
Revenues are up 0.5% on the year on the back of stronger PC sales, but Q4 printer segment nosedives with net revenues down 6% year over year. Printer hardware units were down 9% and supplies net revenue was down 7%.
As the Xerox HP tussle continues, HP 2019 and Q4 results are out. The 2019 year earnings were $58.5 billion (€53.16 billion), up 0.5% from the prior-year period. Q4 earnings were of $15.4 billion (€13.99 billion), up 0.3% from the prior-year period.
“2019 marks our third consecutive year of revenue, non-GAAP operating profit and non-GAAP earnings growth, with non-GAAP EPS up 11% and strong free cash flow of $4 billion (€3.6 billion),” said Enrique Lores, President and CEO, HP Inc. “We delivered an excellent Q4, with 11% non-GAAP EPS growth. Our strategy is working, and we are confident in our business heading into FY20.”
Personal Systems net revenue was up 4% year over year (up 5% in constant currency) with a 5.3% operating margin. Commercial net revenue increased 8% and Consumer net revenue decreased 4%. Total units were up 8% with Notebooks units up 9% and Desktops units up 5%.
2019 printing net revenue was $20.07 billion (€18.24 billion), down 3.65% over last year and Q4 printing revenues were $4.98 billion (€4.52 billion), down 6% year over year with a 15.6% operating margin. Total hardware units were down 9% with Commercial hardware units down 1% and Consumer hardware units down 10%. Supplies net revenue was down 7%.
The recently announced HP “Advance, Transform, Disrupt” strategy to protect its market share and plans to focus on the print quality, sustainability and the security benefits of its own brand supplies are yet to kick in. In the EMEA region, net revenues have been falling since for the last eighteen months.
In The Recycler report: 2020: A new Perspective Reuse accounts (units) for 27% of the market and in the new single-use cartridge segment, non-OEM new build cartridges accounts (units) for 28% of the market.
Categories : World Focus