Enrique Lores, CEO, H.P.
Scott Milne | Cnbc
HP shares rose 9% on Tuesday following a report of fiscal fourth-quarter earnings by the PC manufacturer, beating analysts’ projections and providing optimistic earnings forecasts.
- Income: 62 cents per share, adjusted, versus 52 cents per share expected by analysts, according to Refinitive.
- Revenue: $ 15.3 billion expected by analysts, $ 14.7 billion according to Refinitive.
Revenue declined for the fourth consecutive quarter on an annual basis. According to a statement, it fell about 1% in the quarter, which ended on 31 October.
HP is forecasting 64 cents to 70 cents in adjusted earnings per share in the fiscal first quarter, higher than the refinitive consensus of 54 cents.
The company’s largest business segment, Personal Systems, which includes PC notebooks and desktops, reported revenue of $ 10.4 billion, flat year-over-year and less than $ 10.5 billion among analysts provided by FactSet. Within that unit, notebook sales rose 18% to $ 7.41 billion as people looked for computers to help them work and learn from home due to the coronovirus epidemic, with the overall segment falling to desktops and workstations Was pulled
HP Myers, HP’s chief change officer and acting chief financial officer, on a conference call with analysts, more than doubled HP and revenue from Chromebook PCs from Chromebook PCs. He replaced Steve Feiler, who moved to the quarters to join Google.
Also on Tuesday, PC maker Dell reported fiscal third-quarter results and said consumer devices sales, including PCs, were up 14% from a year earlier, which ended on October 30.
HP said component shortages continue to be dealt with, and the company expects people to continue to stay home with a tendency to limit growth in the first half of the 2021 fiscal year, CEO Enrique Lores said on the call. Myers said that constrained supply of chips and display panels could damage HP’s ability to meet demand, particularly notebooks. She said that people will continue to look for less expensive products.
Excluding the after-hours leap, HP shares are up 6% since the start of the year, while the S&P 500 gained nearly 13% over the same period.
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