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HP stock jumps after earnings beat, CEO says return to office driving PC demand

Shares of HP had been up greater than 8% in prolonged buying and selling Tuesday after the pc {hardware} maker reported better-than-expected quarterly outcomes and robust steerage for the present quarter.

Here is the way it did versus Refinitiv consensus expectations for the quarter ending Oct. 31:

  • Earnings: $0.94, adjusted, versus $.88 anticipated
  • Income: $16.68 billion versus $15.4 billion anticipated

HP expects to see sturdy demand for its private computer systems for the “foreseeable future” throughout its segments, CEO Enrique Lores mentioned Tuesday on CNBC’s “Mad Cash.” Nevertheless, Lores mentioned HP’s business shoppers are at present taking precedent whereas the corporate faces provide constraints.

HP’s private methods internet income got here in at $11.8 billion, up 13% year-over-year. The give attention to enterprise was clear on this phase, the place it confirmed a 3% year-over-year income decline in its shopper PC enterprise however a 25% income pop in its business PC enterprise income. Whole PC unit gross sales had been down 9%, nonetheless.

The corporate’s printing enterprise posted $4.9 billion in income, up 1% year-over-year. Business printing income was up 19% year-over-year whereas shopper printing income fell 6%.

“As places of work are reopening, firms are investing to enhance the expertise of their workers, and this continues to drive very robust PC demand,” Lores informed CNBC’s Jim Cramer.

“We’re nonetheless working in a supply-constrained atmosphere, and we now have been prioritizing business gross sales as a result of margin is best for the corporate.”

Shares of HP are up almost 31% up to now in 2021, primarily based on Tuesday’s closing value of $32.19.

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