HP Exceeds Expectations as Employees Return to the Office

HP stock rises after strong results due to growth in demand for personal computers

HP stock rose more than 8% in extended trading after the computer hardware company reported better-than-expected quarterly results and published strong guidance for the quarter, where the company’s CEO, Enrique Lores, stated that the re-opening of offices prompted companies to invest in developing staff equipment.

During the quarter ending October 31, HP earned about $0.94 per share, compared to analyst expectations of $0.88, and collected total revenue of $16.68 billion, beating expectations of $15.4 billion.

Net income from personal devices came in at about $11.8 billion, growing by 13% year-on-year, and it was clear that the focus was on businesses, as net income in consumer PCs declined 3% year-over-year and commercial PC revenue grew 25%, overall PC sales were down 9%.

The company’s printer division posted revenue of $4.9 billion at a 1% annual growth rate, as revenue from commercial printers jumped 19%, and revenue for consumer printers fell 6%.

HP anticipates strong demand for its PCs in the “near future” in both divisions, but Lores said the company’s commercial customers are a priority as HP faces sourcing difficulties, stating that commercial sales take precedence because their margins are better for the company.

HP’s stock is up 31% so far during 2021 from its closing price yesterday at $32.19.

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