Hewlett Packard Inc. shares jumped after hours on Wednesday after the company reported higher-than-expected sales and earnings for its fiscal second quarter and showed accelerating sales momentum in the second quarter, delivering growth in both personal computers and printers for the first time in more than a half-decade.
The Palo Alto, California-based giant reported second quarter earnings of 40 cents per share, beating analysts’ estimates by a penny, 39 cents. Revenue also went up 7% to $12.4 billion in the period that ended in April, beating Wall Street’s $11.93 billion expectations for the quarter and analysts’ estimates for the fourth consecutive quarter.
Moreover, the company gave a forecast for third quarter profit that were unevenly in line with the market’s guidance for the period. The forecast may also top projections and raised its outlook for the fiscal year, and that followed an upbeat quarterly report in February.
Chief Executive Dion Weisler noted that it is the first quarter in which both PC and printing revenue increased year-over-year since 2010, with PC sales growing 10% and printing revenue increasing 2%. He has also been looking for the right lineup of products to grab share in markets that have been under pressure since his company’s split from Hewlett Packard Enterprise Co.
Consumer demand helped drive stronger growth in the recent period, and laptop unit shipments jumped 12%, reflecting a PC industry that finally showed a spark of growth for the first time since 2012. The company has also been putting money up for new printer products, while paying out marketing dollars to create new business.
Shannon Cross, an analyst, said in an email that a consistent performance is basically what the investors look for, that there is “continuing benefit from investments made over the past few years in notebook innovation.”
HP shares have climbed 28% this year through Wednesday’s close and the stock jumped as much as 9.2 percent in extended trading, having outperformed Hewlett Packard Enterprise.
The company also improved its forecast for the current fiscal year, which ends in October. Full-year adjusted profit from continuing operations should be $1.59 to $1.66 a share, up from previous guidance of $1.55 to $1.65. Analysts on average, estimate $1.62 in annual profit.
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