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Morningstar

A Fair-Value Boost for HP

We are raising our fair value estimate due to the outperformance across HP's operating segments as well as the success of the company's turnaround efforts in the printing segment.

Revenue in the second fiscal quarter came in at $12.4 billion, up 7% year over year. Personal Systems contributed most to the company’s top-line growth in the quarter, reporting revenue growth of 10% year over year. Specifically, notebooks displayed 17% year-over-year revenue growth while workstations came in at 7% year over year. The strong performance in Personal Systems resulted in HP regaining the number one position in PC market share. Printing revenue grew 2% year over year with both hardware and supplies growing together for the first time since fiscal 2011. Commercial hardware and consumer hardware reported 3% and 4% top-line growth, respectively, while supplies grew 2% year over year.

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About the Author

Timothy Feeney

Equity Analyst

Tim Feeney is an equity analyst for Morningstar, covering consumer and enterprise hardware companies.

Before joining Morningstar in 2016, Feeney worked in investment management for Madison Capital Funding LLC. Previously, he was an analyst for Grant Thornton, where he performed valuation services.

Feeney holds a bachelor’s degree in economics and finance from Miami University of Ohio. He is a Level 2 candidate in the Chartered Financial Analyst® Program.

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