HP (HPQ) results for the fourth quarter of 2020

HP shares rose 9% in extended trading on Tuesday after the PC maker reported fourth-quarter tax results that beat analysts’ estimates and provided bullish earnings forecasts.

• Earnings: 62 cents per share, adjusted, compared to 52 cents per share as expected by analysts, according to Refinitiv.
• Returned: $ 15.3 billion versus $ 14.7 billion as predicted by analysts, according to Refinitiv.

Revenues declined for the fourth consecutive quarter on an annualized basis. It fell about 1% in the quarter, which ended Oct. 31, according to a statement.

HP is forecasting 64 cents to 70 cents in adjusted earnings per share in the fiscal first quarter, above the Refinitiv consensus of 54 cents.

The company’s largest business segment, personal systems, which includes laptops and desktops, generated $ 10.4 billion in revenue, stable year-over-year and below to the $ 10.5 billion consensus among analysts polled by FactSet. Within this unit, laptop sales rose 18% to $ 7.41 billion as people sought out computers to help them work and learn from home due to the coronavirus pandemic. . The global segment was dragged down by the decline in desktops and workstations.

HP has more than doubled the unit sales and revenues of Chromebook computers running Google’s Chrome OS operating system, Marie Myers, chief transformation officer and interim chief financial officer of HP, said in a conference call with analysts. She took over from Steve Fieler, who left for the neighborhood to join Google.

Also on Tuesday, PC maker Dell announced fiscal third quarter results and said sales of consumer devices, including PCs, were up 14% from a year earlier in the closed quarter. October 30.

HP continues to face component shortages, and the company expects this trend to limit growth in the first half of fiscal 2021 as people stay at home, CEO Enrique Lores said at the meeting. call. Limited supplies of chips and display panels could hamper HP’s ability to meet demand for laptops in particular, Myers said. She said people will continue to look for cheaper products.

Excluding the after-hours jump, HP stocks are up 6% year-to-date, while the S&P 500 has gained around 13% over the same period.

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