HP Shares Rise As Earnings Rise, CEO Says Return To The Office Is Driving PC Demand

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HP’s shares rose more than 8% in extended trading Tuesday after the computer hardware maker announced better-than-expected quarterly results and strong guidance for the current quarter.

Here’s how it fared versus Refinitiv’s consensus expectations for the quarter ended October 31:

  • Merits: $ 0.94 adjusted versus $ 0.88 expected
  • Revenue: $ 16.68 billion versus an expected $ 15.4 billion

HP expects robust demand for its PCs in its segments in the “foreseeable future”, CEO Enrique Lores said in CNBC’s Mad Money on Tuesday. However, Lores said that HP’s commercial customers are a priority right now while the company faces supply shortages.

HP’s net sales of Personal Systems were $ 11.8 billion, up 13% year over year. The focus on businesses was clear in this segment, where there was a 3% year-over-year revenue decline in the consumer PC business but revenue growth of 25% in the commercial PC business. However, total PC sales fell by 9%.

The company’s printing business had sales of $ 4.9 billion, up 1% from last year. Commercial print revenue increased 19% year over year, while consumer print revenue declined 6%.

“With the offices reopening, companies are investing to improve their workforce’s experience, and this continues to create very strong PC demand,” Lores told CNBC’s Jim Cramer.

“We’re still in a limited supply environment and we’ve prioritized commercial distribution because the margin is better for the company.”

HP stock is up nearly 31% so far in 2021, based on its closing price of $ 32.19 on Tuesday.

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