HP sales, earnings beat estimates despite ‘volatile macro environment’

Rate this post

HP Inc. it recorded another strong quarter of personal computer sales and boosted its earnings outlook on Tuesday, sending its shares slightly up in off-hours operations.

“We continue to deliver consistent results despite a volatile macro environment,” HP CEO Enrique Lores told MarketWatch in an interview before the results were announced. To that end, HP raised its tax profit target for 2022 to $ 4.24 to $ 4.38 per share, while continuing toward its goal of reducing structural costs by $ 1.2 billion.

Net income was $ 16.5 billion, up 4% from $ 15.9 billion a year ago.

The original Silicon Valley HPQ company,
+ 0.23%
reported second-quarter fiscal net income of $ 1 billion, or 94 cents per share, compared to net income of $ 1.2 billion, or 98 cents per share, in the quarter last year. Adjusted earnings were $ 1.08 per share. HP provided guidance of $ 1.03 to $ 1.08 per share for its current third quarter, beating analysts’ forecasts ($ 1.02 per share).

Analysts polled by FactSet expected net income of $ 1.05 per share on revenue of $ 16.2 billion in the second quarter.

Sales of HP personal systems, which include computers and laptops, were the best, at $ 11.5 billion, up 9% from the same quarter a year ago. The performance exceeded FactSet analyst estimates by $ 11.4 billion.

“Despite an incredibly harsh macro environment and a lot of alarm about the slowdown in demand, HP offered a quarter of growth that was anchored by continued strong commercial purchase demand for hybrid jobs,” said Daniel Newman, senior analyst at Futurum Research, a MarketWatch.

Printer revenue, however, fell again by 7% to $ 5 billion, a victim of supply chain constraints.

Shares of HP rose 0.3% in the extended session and gained 2.7% this year. The widest S&P 500 SPX index,
has dropped 13% in 2022.

Source link

Leave a Comment