Wall Street

HP and Dell revenue up as PC sales rise due to coronavirus

With continued learning on the Internet and working from home, the rate of computer users is increasing, and these results are reflected in the sales of both companies Dell and HP in recent quarters, as both of them announced revenues that exceeded expectations on Tuesday, but the reactions of investors differed towards the two companies, as HP shares rose by 5% in premarket trading, while Dell shares rose 0.8% only.

The details of what was announced by the companies stated that HP exceeded Wall Street expectations to reach net revenues in the fourth quarter of $668 million, which raises the value of one share by 49 cents and adjusted earnings to 62 cents, compared to last year’s profits, which are estimated at $388 million, or 26 cents per share.

But revenue fell from $15.41 billion in the same period last year to $15.26 billion, and analysts put adjusted earnings at 52 cents per share, based on sales of $14.69 billion.

HP forecasts first-quarter adjusted earnings to rise from 64 cents to 70 cents, beating expectations of 54 cents per share, and the company plans to increase revenue by 10% in fiscal 2021.

Where the company announced an 18% increase in sales of its laptops, to reach $7.41 billion, and sales of desktop computers are still suffering from a 28% decline in sales compared to the same period last year, to reach $2.25 billion, and sales of high-performance operating systems Workstation decreased by 28%. 45% to $419 million, and printer sales fell 3% to $4.83 billion, consisting primarily of $3.13 billion in printer supplies.

On the other hand, Dell’s sales exceeded Wall Street expectations and reported third-quarter net profit of $881 million, or $1.08 per share, compared to last year’s sales of $522 million, or 66 cents per share.

The company reported adjusted earnings of $2.03 per share, and revenue rose from $22.84 billion in the same quarter last year to $23.48 billion, as Wall Street expected adjusted earnings of $1.42 per share and sales of $21.9 billion.

The company said that revenue from laptops and desktops rose to $12.3 billion, with sales to consumers up 47% and businesses 62% higher than the same period last year, and its Chromebook business revenue tripled, and overall, Dell’s stock rose 37%. HP stock rose only 5.8%.

The S&P 500 is up 13% in 2020.

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