HP Inc. (HPQ), the PC and printer business of the former Hewlett-Packard Co., on Monday reported a first-quarter earnings and revenues that trumped Wall Street analysts’ estimates, driven by strong demand for computers. Moving ahead, the PC giant lifted its adjusted earnings outlook for the full year 2022.
HP’s first-quarter profit was $1.09 billion or $0.99 per share, compared with net income of $1.07 billion or $0.83 per share last year.
Adjusted earnings were $1.10 per share, compared with $0.92 per share in the year-ago quarter. Analysts polled by Thomson Reuters expected earnings of $1.02 per share for the quarter.
Revenue rose 8.8% to $17.0 billion from $15.6 billion a year ago. Analysts had a consensus revenue estimate of $16.52 billion.
Personal Systems net revenue was up 15% year over year with consumer revenues down 1% and commercial revenues up 26%. Printing net revenue was $4.8 billion, down 4% year over year.
“We once again delivered strong top and bottom-line results with record revenue driven by strong demand and our leadership in hybrid,” said Enrique Lores, HP President and CEO. “Our Q1 performance was particularly strong across our key growth areas that collectively grew double digits including gaming, peripherals, workforce solutions, consumer subscriptions, and industrial graphics and 3D. Our performance reflects progress against our strategy to build a stronger HP.”
Looking forward to the second quarter, the company expects adjusted earnings of $1.02 to $1.08 per share. Analysts had a consensus revenue estimate of $1.02 per share.
For the fiscal year 2022, HP now expects adjusted earnings of $4.18 to $4.38 per share, up from prior estimate of $4.07 to $4.27 per share. Analysts currently estimate earnings of $4.17 per share.
HPQ closed Monday’s trading at $34.36, down $0.09 or 0.26%, on the NYSE. The stock further slipped $0.56 or 1.63% in the after-hours trading.
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