Personal computer and printer maker HP (HPQ) late Monday topped Wall Street’s targets for its fiscal first quarter, thanks to strong commercial PC sales. It also raised its earnings guidance for the full year. But HPQ stock dipped in extended trading.
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The Palo Alto, Calif.-based company earned an adjusted $1.10 a share on sales of $17.03 billion in the quarter ended Jan. 31. Analysts had expected HP earnings of $1.02 a share on sales of $16.52 billion, according to FactSet. On a year-over-year basis, HP earnings rose 20% while sales climbed 9%.
HP’s PC revenue rose 15% to $12.2 billion in the first quarter. Commercial sales in the segment increased 26% while consumer sales decreased 1%.
Meanwhile, HP’s printing business revenue fell 4% to $4.8 billion. Commercial sales in the segment increased 9% while consumer sales dropped 23%.
HPQ Stock Retreats Despite Beat-And-Raise Report
For the current quarter, HP expects to earn an adjusted $1.05 a share, based on the midpoint of its guidance. Analysts had predicted $1.03 a share.
HP also raised its earnings guidance for the full fiscal year. It now expects adjusted earnings of $4.18 to $4.38 a share. The midpoint of $4.28 is above Wall Street’s target of $4.17, according to FactSet.
“Our Q1 performance was particularly strong across our key growth areas that collectively grew double digits including gaming, peripherals, workforce solutions, consumer subscriptions, and industrial graphics and 3D,” Chief Executive Enrique Lores said in a news release.
In after-hours trading on the stock market today, HPQ stock slipped 1.1%, near 34. During the regular session Monday, HPQ stock dipped 0.3% to close at 34.36.
Last Thursday, industry peer Dell Technologies (DELL) delivered a mixed fiscal fourth-quarter report. It missed earnings expectations but topped views on sales for the period. Dell reported strong sales of PCs to commercial customers.
HPQ stock ranks second out of 13 stocks in IBD’s Computer Hardware and Peripherals industry group, according to IBD Stock Checkup. Dell ranks third in the group.
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