HP jumps in revenue and growing PC pocket book gross sales


Enrique Lores, CEO of HP

Scott Mlyn | CNBC

HP shares rose up to 9% in extended trading on Tuesday after the PC maker reported fourth-quarter earnings that exceeded analyst estimates and delivered an optimistic earnings forecast.

Merits: 62 cents per share, adjusted versus 52 cents per share, as analysts expected, according to Refinitiv.Revenue: According to Refinitiv, $ 15.3 billion versus $ 14.7 billion as analysts expected.

Revenue declined for the fourth straight quarter on an annualized basis. It fell about 1% in the quarter that ended October 31, according to a statement.

HP forecasts adjusted earnings per share of 64 to 70 cents for the first quarter of the fiscal year, which is above the refinitive consensus of 54 cents.

The company's largest business, Personal Systems, which includes PC notebooks and desktops, had sales of $ 10.4 billion, unchanged from last year and below a consensus polled by FactSet of $ 10.5 billion -Dollars lay. Within that unit, notebook sales rose 18% to $ 7.41 billion as the coronavirus pandemic made people look for computers to work and study from home. The overall segment was impacted by declines in the desktop and workstation.

HP has more than doubled sales and sales of Chromebook PCs with Google's Chrome OS operating system, said Marie Myers, chief transformation officer and acting chief financial officer of HP, in a conference call with analysts. She succeeded Steve Fieler, who joined Google in the quarter.

Also on Tuesday, PC maker Dell announced fiscal third quarter results, saying sales of consumer devices, including PCs, increased 14% year over year for the quarter ended October 30th.

HP continues to struggle with component shortages, and the company expects this trend to limit growth in the first half of fiscal 2021 as people continue to stay home, CEO Enrique Lores said on the conference call. The limited supply of chips and display panels could affect HP's ability to meet demand for notebooks in particular, Myers said. She said people would keep looking for cheaper products.

Without the post-close increase, HP shares are up 6% since the start of the year, while the S&P 500 is up around 13% over the same period.

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Katherine Clark