HP beats profit forecasts due to higher PC sales
The upbeat results come as PC maker repeatedly rejects takeover offers from XP
PC maker 0'>HP has posted quarterly earnings that beat experts’ estimates.
According to the report provided by HP, its revenue from the laptops sector rose 3.6 per cent to $10.43bn (£8.1bn, €9.5bn) in the fourth quarter. The number is slightly higher than analysts had predicted ($10.3bn).
Overall revenue was also higher than expected – $15.41bn against $15.25bn.
Although sales from the company's printer division fell 6 per cent to $4.98bn and net income declined to $388m, or 26 cents per share. During the same period last year, for comparison, it was $1.45 billion, or 91 cents per share.
HP shares closed at $20.15 on Tuesday, November 26, prior to the announcement.
HP, the second-biggest PC maker after Chinese Lenovo Group, now has a 23.8 per cent share of the market. The company has received most attention as its main rival Xerox offered to buy HP for $33.5bn, or $22 per share.
However, HP’s board unanimously rejected Xerox’s takeover bid. Xerox, in its turn, threatened to buy the shares directly from the shareholders. The deadline for a "friendly" discussion ended on November 25.
Billionaire investor Carl Icahn, who stood behind the takeover offer, owns a 10.6 per cent stake in Xerox and 4.24 per cent stake in California-based HP.
FURTHER READING: Xerox threatens HP with hostile buyout after rejection