HP may have done enough in its earnings release after the close on Monday to quiet concerns on the Street about how slowing PC growth in 2022 and ongoing supply chain challenges would shape the computing giant’s profits.
The company squashed analyst profit forecasts for its first fiscal quarter, powered by strong sales of commercial computers and printers. HP said commercial computer and printer sales rose 26% and 9%, respectively from the prior year.
“We had a very good quarter,” HP CEO Enrique Lores told Yahoo Finance Live.
HP shares rose slightly in after-hours trading.
Here is how HP performed compared to Wall Street estimates in its first fiscal quarter:
Net Sales: $17 billion vs. $16.5 billion
Personal Systems Sales: $12.2 billion vs. $11.63 billion
Printing Sales: $4.8 billion vs. $4.88 billion
Diluted EPS: $1.10 vs. $1.02
The strength in commercial computers and printers offset a more muted performance for consumer products. HP said consumer PC sales fell 1%, while consumer printing sales dropped 23%.
Operating profit margins expanded 70 basis points in HP’s personal systems segment, but declined 160 basis points in the printing business.
Lores told Yahoo Finance Live the company has stopped shipments to Russia in light of its invasion of Ukraine.
“We have stopped all our shipments to Russia. And we really hope that they will be restored as soon as possible to the region,” Lores said.
The company offered up an upbeat outlook despite ongoing supply-chain constraints and a slowing PC market.
For the second fiscal quarter, HP sees EPS in a range of $1.02 to $1.08. Analysts had estimated $1.02 a share. The company lifted its full year EPS outlook to $4.18 to $4.38 a share from $4.07 to $4.27 previously. Wall Street was modeling for $4.17 a share.