By
Tolu Ajiboye
May 31st, 2023
Hewlett Packard’s net revenue jumped 13% year-over-year while the company is also expecting robust demand in the foreseeable future.
In the extended trading session on Tuesday, November 23, stocks of computing giant Hewlett-Packard (NYSE: HPQ) shot up by 7.49% trading at $34.60 levels. This comes as the hardware maker reported better-than-expected quarterly results with stronger guidance for the current quarter.
HP thus reported adjusted earnings of $0.94 per share against the expected $0.88. Besides, the company’s revenue also stood at $16.68 billion against the expected $15.54 billion.
Speaking to CNBC on Tuesday, HP CEO Enrique Lores said that the company expects robust demand for its personal computers for the “foreseeable future”. He also added that HP’s commercial clients are currently taking precedent while the company has been facing supply constraints.
The company’s personal systems net revenue jumped 13% year-over-year at $11.8 billion. Besides, the focus on the enterprise was clear, showing a 3% revenue decline on its consumer PC business. On the other hand, the total unit sales were also down by 9%.
The company’s printing business also jumped 1% year-over-year clocking revenue of $4.9 billion. The consumer printing revenue dropped 6% while the commercial printing revenue surged 19% year-over-year owing to the re-opening of the offices as governments started lifting lockdowns. Speaking to CNBC, HP CEO said:
“As offices are reopening, companies are investing to improve the experience of their employees, and this continues to drive very strong PC demand. We are still operating in a supply-constrained environment, and we have been prioritizing commercial sales because margin is better for the company.”
The HP stock is already up by 31% so far in the year 2021.
Hewlett Packard Eyes for Edge-to-Cloud Strategy
Last month, in a meeting on the company’s strategic move ahead, Hewlett Packard said that it is transitioning to become an edge-to-cloud company. Antonio Neri, president and CEO of HP Enterprise said:
“HPE is at the center of compelling megatrends that are driving new customer expectations and presenting new profitable growth opportunities. We are accelerating our market leadership, as customers respond to our uniquely integrated portfolio. I am proud of our progress, confident in our position, and excited about the value we will continue to deliver for our shareholders.”
The CEO further added that amid this age of data explosion, the company will be putting its focus on handling data security. The company’s cloud-everywhere experience will allow users to manage data and workloads across a distributed enterprise.
