HP Inc's top and bottom lines grew in its third quarter, but CEO Dion Weisler warned that a sluggish PC market could impact future numbers.
On an earnings call, transcribed by Seeking Alpha, Weisler also offered his first comments on HP's recent acquisition of UK-based print giant Apogee.
We take a look at some of the key takeaways from the vendor's Q3 numbers.
HP beat market expectations
Net revenue was $14.6bn, up 12 per cent, while net earnings grew by 26 per cent to $0.9bn and EPS shot up double digits by 21 per cent to $0.52.
The result beat Wall Street expectations, with Thomson Reuters reporting that analysts forecast HP to earn 51 cents a share on $14.27bn in revenue.
Regionally, in constant currency, APAC and Japan logged the biggest year-on-year increase at 13 per cent, followed by 10 per cent in EMEA, and six per cent in the Americas.
Broken down by segment, HP said its sales results were driven by its Personal Systems business - comprising notebooks, desktops and work stations - which reached $9.4bn, up 12 per cent year on year.
However, it was HP's print business that was the more profitable of the two, bringing in an operating profit of $832m on sales of $5.19bn in comparison to operating profits of $365m from its personal systems.
Apogee acquisition to open "access to new profit pools"
In an exclusive at the start of August, HP's print president Enrique Lores told Channelnomics Europe sister site CRN that it had acquired Kent-based managed services player Apogee.
In the Q3 earnings call, Weisler gave more detail into HP's strategy behind the buyout.
"Apogee are the largest independent print and document service provider in Europe…This is an important step," he said.
"So with Apogee, we're going to gain access to new profit pools… It really augments the three existing go-to-market motions that we have - the direct motion, the traditional IT channel motion that we've had for the longest time, and now with us getting into A3s, we're more and more working with these office equipment dealers or OEDs.
"And we were underrepresented in OEDs and Apogee is squarely in this space. They enhance our ability to deliver the solutions and services necessary to win in this market."
The acquisition is expected to close by the end of the calendar year.
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