Shares of HP Inc (NYSE: HPQ) were up 8.0% in extended trading on a sharp increase in quarterly revenue led by personal computer sales. The American multinational gave strong guidance for the future but warned that supply constraints will continue in H1 of 2022.
Highlights from CEO Lores’ interview with Jim Cramer
On Mad Money with Jim Cramer, CEO Enrique Lores reiterated that the strength of the PC business was a secular event, not a cyclical one.
We expect the PC business to continue to be very strong for the foreseeable future. What is driving demand now is the commercial side as offices are reopening, companies are investing to improve the experience of their employees, and this continues to drive very strong PC demand.
He agreed that revenue from the consumer segment was down in Q4 but said it was primarily because HP was prioritising commercial in a supply constraint environment as it’s better for the margin. Otherwise, demand from both consumer and commercial, he noted, was strong.
Key takeaways from HP’s Q4 earnings report
HP reported $3.1 billion in net earnings or $2.71 per share – a massive increase from last year’s $668 million or 49 cents per share, as per the earnings press release.
The U.S. firm generated $16.7 billion in net revenue, representing 9.0% YoY growth. According to FactSet, experts had forecast 88 cents of EPS on $15.39 billion in revenue.
At $11.8 billion, personal systems sales that include PCs and laptops were up 13% in the recent quarter – over $1.0 billion ahead of expectations. Printer revenue came in at $4.9 billion and remained roughly unchanged from last year.
For Q1, HP forecasts up to 98 cents of per-share earnings; roughly in line with experts’ estimates. Last month, the NYSE-listed company boosted its annual dividend by 29%.
The post HP CEO: ‘PC business will remain strong for the foreseeable future’ appeared first on Invezz.