HP Inc.: shares up after results beat Street
(CercleFinance.com) - US personal computer maker HP Inc.
reported quarterly profit that exceeded estimates, helped by demand for its notebooks, sending its shares up as much as 2% on Wednesday.
Non-GAAP diluted net EPS was 0.60 dollar in the fourth quarter to 31 October, up from 0.54 dollar a year ago, and above the previously provided outlook of 0.55 dollar to 0.59 dollar.
Fourth-quarter net revenue was 15.4 billion dollars, up 0.3% year-on-year, HP added.
For the first quarter of fiscal 2020, HP estimates non-GAAP diluted net EPS between 0.53 dollar to 0.56 dollar, in line with Wall Street estimates.
However, "the debate on HP continues to center on the proposed Xerox acquisition," Credit Suisse analysts commented today.
While the brokerage firm continues to believe that consolidation within the printing industry makes sense, seeing significant potential for cost takeout if both companies were to combine, leverage on the transaction as currently proposed "remains a key risk," Credit Suisse added.
HP shares, which have risen by about 10% since Xerox's bid, are up a further 1.8% in early trading on Wednesday.
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