HP Inc. shares were initially down 4% in extended-trading Thursday after the PC giant announced what has become a familiar pattern: notebook sales continue to thrive in the age of COVID.
reported net earnings of $1.2 billion, or 93 cents a share, compared with net earnings of $800 million, or 51 cents a share, in the year-ago quarter. Revenue improved to a record $15.9 billion from $12.5 billion a year ago.
Analysts surveyed by FactSet had expected earnings of 89 cents a share on revenue of $14.98 billion.
“We like to sound like a broken record because, yes, demand for PCs, peripherals, and printers continue to sell in a hybrid work environment, and as businesses return to offices,” HP Chief Executive Enrique Lores told MarketWatch in a phone interview. “We like boring [predictably good] quarters.”
Personal Systems’ net revenue led the way yet again. They jumped 27% to $10.6 billion as consumers in particular devoured notebooks (up 63% year-over-year). Consumer net revenue increased 72%. Printing net revenue, meanwhile, was $5.3 billion, a gain of 28% year over year.
HP also said it is raising its fiscal 2021 adjusted earnings guidance by 25 cents, to between $3.40 and $3.50 a share.
“This quarter marked a nice outperform and served as a clear indicator that remote and hybrid work trends are robust,” Daniel Newman, principal analyst of Futurum Resarch, told MarketWatch.
HP shares have improved 30% this year. The broader S&P 500 index
has climbed 12% in 2021.