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$HPQ's Printing business continues to make progress with YoY growth in revenue, operating profit and market share. In 4Q17, revenue grew 7% YoY with growth across all geographic regions. Hardware units grew both YoY and QoQ, and marks fifth consecutive quarter of YoY unit growth. To note, total print unit market share was 40% in 3Q17.
Despite the market weakness, $HPQ still managed to ship more PCs than it shipped a year ago, and its market share also expanded. Its Personal Systems business, which includes PC sales, recorded a 13% YoY increase in revenue. The division contributed 65.5% of total revenue in the quarter with the rest coming from the Printing business.
$HPQ reported a 29% growth in profit for 4Q17 as the PC and printer company continues to see growth from both of its businesses. HPQ posted a double-digit top line growth, while its sister company $HPE managed a single-digit growth. To note, HPQ posted strong results for the last few quarters after it spun-off from HPE.
Looking forward to 4Q17, $HPQ sees year-over-year supplies revenue growth to remain flat to slightly up when making similar operational adjustments for currency and then backing out $225MM for the supply sales model channel inventory adjustment taken in 4Q16.
Even as net revenue jumped 10% to $13.1Bil in 3Q17, $HPQ saw costs push the net earnings down 11% to $696MM or $0.41 per diluted share. Non-GAAP EPS slid 10% to $0.43. In the quarter, net earnings from continuing operations slipped 17% to $696MM.
According to preliminary results by $IT, Worldwide PC shipments totaled 61.1MM units in 2Q17, a 4.3% decline from last year. Shipments in 2Q17 were the lowest quarter volume since 2007. $HPQ reclaimed the top position from Lenovo in the worldwide PC market in 2Q17, followed by $DELL and $AAPL succeeding in third and fourth place.
On the PC market front, $HPQ increased its pricing in both 1Q17 and 2Q17. During 2Q17, the company saw the consumer price increase flow through and having quicker impact than the commercial side. The company expect the commercial price increase to flow through more in 3Q17.
$HPQ saw a 2% YoY revenue growth in Printing for 2Q17, with both hardware and supplies revenue growing in the same quarter for the first time since 2Q11. Units for the quarter also grew on YoY basis, which helped the company to gain market share.
During 2Q17, $HPQ’s Personal Systems net revenue was up 10% YoY with a 3.2% operating margin. Commercial net revenue increased 7% and Consumer net revenue increased 16%. Total units were up 5% with Notebooks units up 12% and Desktops units down 6%.