HP does well this quarter

The maker of expensive printer ink HP appears to have turned a corner.

It reported a 3.6 percent rise in quarterly revenue, largely helped by a stabilizing PC market. Revenue rose to $12.68 billion from $12.25 billion.

However, the company’s net earnings from continuing operations fell to $611 million in the first quarter ended 31 January from $650 million a year earlier. This indicates that HP is not out of the woods yet.

The results were better than the cocaine nose jobs of Wall Street predicted most expected $11.85 billion in revenue.

HP’s results included personal systems (what HP calls PCs) revenue of $8.25 billion, a 10 percent gain from a year ago. Total PC units sold rose eight percent, with notebook shipments rising 12 percent. Desktop PC sales stayed flat with the year-ago period.

HP’s largest source of profit is the ink and toner business which has been hit by competitors selling less-expensive ink cartridges and a general decline in printing of documents, especially by younger people.

Sales in that segment fell three percent in the latest quarter, improving from a 16 per cent drop in full fiscal year 2016.

Chief Financial Officer Cathie Lesjak said the results were clear proof point that we’re on the march to stabilise supplies, revenue and constant currency by the end of this year.