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

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

HP Inc. posted another strong quarter of personal computer sales and raised its earnings outlook Tuesday, sending its shares up 2% immediately in after-hours trading.

“We continue to deliver consistent results despite a volatile macro environment,” HP Chief Executive Enrique Lores told MarketWatch in an interview before the results were announced. To that end, HP raised its fiscal 2022 earnings guidance to between $4.24 and $4.38 a share while continuing toward its goal of reducing structural costs by $1.2 billion.

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

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

Analysts surveyed by FactSet had expected net income of $1.05 a share on revenue of $16.2 billion in the second quarter.

HP’s personal systems sales, which include PCs and laptops, was the bread winner, at $11.5 billion, up 9% from the same quarter a year ago. The performance breezed past FactSet analyst estimates of $11.4 billion.

“Despite an incredibly tough macro environment and much alarm about slowing demand, HP delivered a growth quarter that was anchored by continued strong demand in commercial buying for hybrid work,” Daniel Newman, principal analyst at Futurum Research, told MarketWatch.

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

HP’s stock has improved 2.7% this year. The broader S&P 500 index SPX has dropped 13% in 2022.

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