Earnings Packard a punchHP stock gets hyped after investors are treated to some tasty earnings.
- Share prices temporarily soared to an ATH of $36.21 before closing up 10%.
- It beat expectations on both ends with EPS of $0.94 on revenue of $16.68bn.
- Personal systems revenue was up 13% at $11.8bn as a return to the office sees an uptick in demand for PCs and laptops.
- Commercial PCs are pulling their weight, seeing a 25% jump in revenue compared to a 3% decline in consumer PCs since the lockdown rush last year.
- Component constraints continue to put pressure on supply, and one quarter of its inventory is still stuck in backlogs. HP is focusing on enterprise clients until parts are readily available.
- Guidance came in well above estimates, forecasting EPS of between $0.92 and $0.98, but analysts aren’t sure it’ll be enough to compete with Dell (DELL) and Lenovo (0092).
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