HP earnings beat estimates as return to office drives PC demand

HP

Shares of HP were up more than 8% in extended trading Tuesday after the computer hardware maker reported better-than-expected quarterly results and strong guidance for the current quarter.

Here’s how it did versus Refinitiv consensus expectations for the quarter ending Oct. 31:

Earnings: $0.94, adjusted, versus $.88 expected
Revenue: $16.68 billion versus $15.4 billion expected

HP expects to see robust demand for its personal computers for the “foreseeable future” across its segments, CEO Enrique Lores said.

However, Lores said HP’s commercial clients are currently taking precedent while the company faces supply constraints.

HP’s personal systems net revenue came in at $11.8 billion, up 13% year-over-year.

The focus on enterprise was clear in this segment, where it showed a 3% year-over-year revenue decline in its consumer PC business but a 25% revenue pop in its commercial PC business revenue. Total PC unit sales were down 9%, however.

The company’s printing business posted $4.9 billion in revenue, up 1% year-over-year. Commercial printing revenue was up 19% year-over-year while consumer printing revenue fell 6%.

Shares of HP are up nearly 31% so far in 2021, based on Tuesday’s closing price of $32.19.

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