HP Inc. reported quarterly revenue and profit that topped analysts’ estimates, buoyed by strong sales of personal computers and printers needed for remote work and study. The company gave a forecast that also handily beat Wall Street expectations, sending the stock higher.
Sales were US$15.6 billion in the fiscal first quarter, the Palo Alto, California-based company said Thursday in a statement. That beat the average analyst estimate of about $15 billion, according to data compiled by Bloomberg. Excluding some items, profit was 92 cents a share, also ahead of Wall Street expectations.
The company forecast fiscal second-quarter profit, minus certain items, of 84 cents to 90 cents a share. That compares with an average analyst estimate of 61 cents. For the full fiscal year, profit will be between US$3.15 and US$3.25 a share, well ahead of current Wall Street estimates. HP shares jumped 3.5 per cent after the results.
HP has enjoyed a surge in demand for laptops needed for study and work at home during the COVID pandemic. The lockdown had dented HP’s printing business as commercial customers left offices empty, but in the latest quarter a surge in consumer demand helped return that unit to growth.
Chief Executive Officer Enrique Lores said higher demand for computers and peripherals is sustainable because consumers have learned the importance of this technology during the pandemic. Later in the year, commercial demand will support orders as companies open up facilities and refresh their office hardware.
“We think that change is sustainable,” he said in an interview. “COVID has made technology more fundamental in all of our lives.”