Hewlett Packard CEO Enrique Lores told investors the working from home and homeschooling trend due to the coronavirus pandemic helped drive quarterly results that were “beyond our expectations” as he spoke with investors on the company’s earnings call.
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“The PC is more essential to daily life than ever and PC use is up more than 20% since COVID.”
Revenue came in at $14.29 billion, far ahead of the $13.3 billion Wall Street was expecting although it was down 2.1% from the year-ago period. Profits also exceeded estimates coming in at $0.52 cents a share or $734 million. On an adjusted basis earnings were 0.49 cents a share, compared to 0.58 a share a year ago.
Demand for notebooks helped drive results with units up 32% and consumer net revenue up 42%. The shift to WFH from the office dented desktop sales which slid 30%.
HP sees more of the same in the coming months.
“In the home and consumer segment, we expect continued strength through at least the end of the year. Even as countries reopen, people will continue to spend more time at home” Lores added.
As a result, the company’s fourth-quarter forecast of $0.50 to $0.54 is slightly above estimates.
Rival Dell also posted a solid quarter reporting earnings, excluding some items, of $1.92 a share, smashing Wall Street estimates of $1.38 a share. Quarterly revenue from Dell’s consumer devices jumped 18% to $3.2 billion with the Texas-based company seeing double-digit growth in notebooks, commercial notebooks and in premium consumer PCs.
Shares of HP have lost 9% this year compared to the 8% rise of the S&P 500.
Dell shares have exceeded both rising by 21%.