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,
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.