HP Beats Earnings, Raises Guidance, And The Stock Drops

HP Inc HPQ delivered a third quarter beat on both the top and bottom line and raised its fiscal 2017 year outlook Wednesday after the bell.

HP reported Q3 Adjusted EPS of $0.43, beating estimates by a penny. Revenues came in at $13.1 billion, $800 million higher than expectations. Sales were up ten percent year over year on a constant currency basis.

“Q3 was another outstanding quarter of successfully executing our reinvention strategy,” said Dion Weisler, HP's President and CEO, in a release. “We stabilized supplies revenue a quarter earlier than expected, posted double-digit revenue growth, delivered non-GAAP earnings per share at the high end of our previously provided outlook range and generated approximately $1.7 billion in free cash flow.”

The company's fiscal year 2017 earnings guidance was raised from $1.59-$1.66 to $1.63-$1.66, which is in-line with the $1.64 consensus estimate.

Despite the beat and guidance raise, shares fell in after-hours trading. The stock is down 2.5 percent to $18.40 at time of writing.  

Image credit: włodi, flickr