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HP inventory jumps after earnings beat, CEO says return to workplace driving PC demand

HP inventory jumps after earnings beat, CEO says return to workplace driving PC demand

HP stock jumps after earnings beat, CEO says return to office driving PC demand

Shares of HP had been up greater than 8% in prolonged buying and selling Tuesday after the pc {hardware} maker reported better-than-expected quarterly outcomes and robust steerage for the present quarter.

Here is the way it did versus Refinitiv consensus expectations for the quarter ending Oct. 31:

  • Earnings: $0.94, adjusted, versus $.88 anticipated
  • Income: $16.68 billion versus $15.4 billion anticipated

HP expects to see strong demand for its private computer systems for the “foreseeable future” throughout its segments, CEO Enrique Lores mentioned Tuesday on CNBC’s “Mad Cash.” Nonetheless, Lores mentioned HP’s industrial purchasers are at the moment taking precedent whereas the corporate faces provide constraints.

HP’s private techniques internet income got here in at $11.8 billion, up 13% year-over-year. The concentrate on enterprise was clear on this phase, the place it confirmed a 3% year-over-year income decline in its client PC enterprise however a 25% income pop in its industrial PC enterprise income. Complete PC unit gross sales had been down 9%, nonetheless.

The corporate’s printing enterprise posted $4.9 billion in income, up 1% year-over-year. Industrial printing income was up 19% year-over-year whereas client printing income fell 6%.

“As workplaces are reopening, firms are investing to enhance the expertise of their staff, and this continues to drive very robust PC demand,” Lores instructed CNBC’s Jim Cramer.

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“We’re nonetheless working in a supply-constrained atmosphere, and now we have been prioritizing industrial gross sales as a result of margin is best for the corporate.”

Shares of HP are up practically 31% to this point in 2021, based mostly on Tuesday’s closing value of $32.19.

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