HP shares jump after earnings beat, CEO says return to office driving PC demand
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 Tuesday on CNBC’s “Mad Money.” 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%.
“As offices are reopening, companies are investing to improve the experience of their employees, and this continues to drive very strong PC demand,” Lores told CNBC’s Jim Cramer.
“We are still operating in a supply-constrained environment, and we have been prioritizing commercial sales because margin is better for the company.”
Shares of HP are up nearly 31% so far in 2021, based on Tuesday’s closing price of $32.19.
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