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
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.