HP shares rose more than 8% in extended trading on Tuesday after the hardware maker reported better-than-expected quarterly results and strong guidance for the current quarter.
Here’s how it went against Refinitiv’s consensus expectations for the quarter ending October 31:
- Earnings: $ 0.94, adjusted, vs. $ 0.88 expected
- Returned: $ 16.68 billion against $ 15.4 billion expected
HP expects to see strong demand for its personal computers in the “foreseeable future” in all of its segments, CEO Enrique Lores said on CNBC’s “Mad Money” Tuesday. However, Lores said HP’s business customers are currently taking the lead as the company faces supply constraints.
HP’s personal systems net sales were $ 11.8 billion, up 13% year-on-year. The focus on the business was clear in this segment, where it showed a 3% year-over-year revenue decline in its consumer PC business, but a 25% increase in revenue from its commercial PC activity. Total PC unit sales, however, were down 9%.
The company’s printing business posted revenue of $ 4.9 billion, up 1% year-on-year. Commercial printing revenue increased 19% year-over-year, while consumer printing revenue declined 6%.
“As offices reopen, companies are investing to improve the experience for their employees, and that continues to drive very strong demand for PCs,” Lores told CNBC’s Jim Cramer.
“We always operate in an environment where supply is limited and we have given priority to commercial sales because the margin is better for the company.”
HP shares have risen nearly 31% so far in 2021, based on Tuesday’s closing price of $ 32.19.
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