HP sold $8.7 billion worth of PCs in first quarter; unit shipments up 19%

“Strong sales of notebook PCs and printers pushed Hewlett-Packard’s fiscal first-quarter profit up 26% and lifted its top line above Wall Street expectations,” Alexei Oreskovic reports for TheStreet.com.

“The better-than-expected financial results, which H-P reported after Tuesday’s market close, also were achieved by continuing cost-cutting. And H-P signaled that cost controls remained front and center, announcing that it would terminate its pension plan for U.S. workers,” Oreskovic reports.

“The Palo Alto, Calif., company grew first-quarter sales 11% to $25.1 billion, ahead of its own guided range of $24.1 billion and $24.3 billion, as well as Wall Street’s expectation of $24.3 billion,” Oreskovic reports. “Excluding $279 million, or 10 cents a share, in amortization charges for purchased intangibles and in-process research and development costs, H-P said it earned 65 cents a share. On that basis, analysts were expecting 62 cents EPS.”

“H-P said it sold $8.7 billion worth of PCs in its first quarter, with unit shipments up 19% year over year. While desktop PC revenue declined 1%, sales of notebook PCs surged 40%,” Oreskovic reports.

Full article here.

Rex Crum reports for MarketWatch, “H-P said it earned $1.55 billion, or 55 cents a share, compared to $1.23 billion, or 42 cents a share, a year ago.”

“The results underscored what many PC industry watchers see as a growing divide between H-P and its top PC rival Dell Inc. Technology research firm Gartner Inc. said that during the fourth quarter of 2006, H-P held a 17.4% stake of the world’s PC market, with shipments rising 24% from the prior year to 11.7 million units,” Crum reports.

Crum reports, “Dell, meanwhile, fell to second place, with a 13.9% market share. Its shipments of 9.4 million units were down almost 9% from the prior year.”

Full article here.

MacDailyNews Note: Apple last quarter posted revenue of $7.1 billion and a net quarterly profit of $1.0 billion, or $1.14 per diluted share. Apple shipped 1.606 million Macintosh units which represented 28% growth in Mac shipments from the prior year.

42 Comments

  1. I hope their computers are better than their printers. We’ve quit buying HP printers because they’re total junk. Nothing but problems with every one of them and everything from hardware problems to a lot of driver problems.

  2. I just got an HP laptop and really like it. I would have preferred a MacBook Pro (or even a MacBook), but they’re just too expensive (even the refurbished ones). I got a laptop that’s comparable to a MacBook (AMD Turion X2 @ 1.6GHz, 1GB, 120GB, nVidia 6150 graphics, 15.4″ LCD, etc…) for $699. Although there’s no OSX (at least, not legally), I’ll hold out hope that Apple licenses it.

  3. yeah, I was gonna say, this is all business taken away from Dell. This is not indicative of the PC market.

    Great stuff HP, it looks like you’re doing very well. Your new media center PC’s look pretty damn sweet too.

    The ironic thing is, when HP is at their best, they are alot like Apple. Dell should have been the source for business PCs and servers, but fscked it all up trying to be a consumer PC company. (Dell’s big revenue push)

  4. when you are eliminating the pension plan for u.s. workers, i think you are running out of ideas on how to keep costs down. what are they going to do next, cut out the free towels? if you lose your towel you are in big trouble.

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