The company reported in its results that had a net revenue of US$14 billion while its printing net revenue was up 11 percent year-over-year.
HP (NYSE:HPQ) is furthering its bet on 3D printing as the company delivered another quarter of ‘double digit growth’
The 3D printing giant reported its second quarter results on Tuesday (May 30) with the key highlights being its net revenue of US$14 billion, which is up 13 percent from the prior year, while its printing net revenue was up 11 percent year-over-year with a 16 percent operating margin.
Dion Weisler, president and CEO of HP said in the second quarter earnings call that the he is very excited about the leadership position that they have taken in 3D printing.
“It’s a long path and it’s a five to 10 year journey,” Weisler said on the company’s ambition to disrupt the $12 trillion industry. “We are making the investments today to secure the shareholder value both today and the future. This a great business for the long term and we remain really confident.”
Weisler also spoke about the company’s recent announcements in the space including its product entry into Mexico.
“3D printing business is a huge opportunity for us, one where we aim to disrupt the $12 trillion global manufacturing market,” he said. “The growth trajectory and the momentum behind this business continues. We have seen an increase in the customers placing repeat orders and upgrading the systems for higher volume manufacturing and scaling with double digit unit installations.”
In the overall printing category, the company had a revenue of $5.2 billion with an operating profit of $839 million. The revenue breakdown indicated that the supplies contributed 65 percent with commercial hardware which includes 3D printing contributing 23 percent.
The supplies revenue was eight percent year-over-year while its commercial hardware units were up 88 percent for the same time period.
In terms of overall second quarter results, the company had a GAAP diluted net earnings per share of $0.64, above the previously provided outlook of $0.42 to $0.46 per share.
“We delivered another quarter of double digit year over year revenue and profit growth, strong EPS and impressive free cash flow and performed well across segments and regions,” Weisler said. “Our sharp focus on innovation, combined with operational excellence and driving profitable growth is paying off.”
Following the announcement on Tuesday, HP Inc closed the trading on Wednesday at $22.18, up 4.13 percent over the one day period. The stock which opened at $22.39 had a high of $22.48. NehalChokshi of Maxim Group upgraded the stock to a ‘Buy’ rating according to TipRanks following the announcement with a revised target price of $28.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.