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HP Shares Jump After Profit Drop, CEO Says Return to Office Drives PC Demand

HP rose more than 8% in extended trading on Tuesday following a report from the computer hardware maker. better than expected quarterly results and a robust forecast for the current quarter.

Here are its results compared to Refinitiv’s consensus expectations for the quarter ended October 31:

  • Earnings: $ 0.94 (adjusted) vs. $ 0.88 expected
  • Income: $ 16.68 billion vs. expected $ 15.4 billion

HP expects to see strong demand for its personal computers for the “foreseeable future” in its segments, CEO Enrique Lores said Tuesday on CNBC’s Mad Money. However, Lores said HP’s commercial customers are currently taking precedent and the company is facing supply constraints.

HP generated net revenues from personal systems sales of $ 11.8 billion, up 13% year-over-year. The enterprise focus was evident in this segment, where the company posted a 3% year-over-year decline in consumer PC revenues, but commercial PC revenues were up 25%. However, total PC sales were down 9%.

The company’s printing business generated revenues of $ 4.9 billion, up 1% year-on-year. Revenue from commercial printing rose 19% year-over-year, while revenue from consumer printing fell 6%.

“As offices reopen, companies are investing in improving the experience of their employees, and this continues to drive very strong demand for PCs,” Lores told CNBC correspondent Jim Cramer.

“We are still on a limited supply and we prioritize commercial sales because the margin is better for the company.”

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

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