Personal computer and printer maker HP late Tuesday edged above Wall Street's earnings target but missed views on sales for its fiscal first quarter. However, it offered a higher outlook for earnings in the current quarter and full year. HPQ stock rose in extended trading.
The Palo Alto, Calif.-based company earned an adjusted 75 cents a share on sales of $13.83 billion in the quarter ended Jan. 31. Analysts polled by FactSet had expected HP earnings of 74 cents a share on sales of $14.1 billion. On a year-over-year basis, HP earnings dropped 32% while sales fell 19% amid weak demand for new PCs.
In its fiscal first quarter, HP's personal computer sales fell 24% year over year to $9.2 billion. Sales in its printing division slipped 5% to $4.6 billion.
HP delivered on adjusted earnings "despite industrywide headwinds," thanks to "disciplined execution," Chief Executive Enrique Lores said in a news release.
HPQ Stock Rises After Report
In after-hours trading on the stock market today, HPQ stock climbed 3% to 30.40. During the regular session Tuesday, HPQ stock advanced 0.4% to close at 29.52.
For the current quarter, HP forecast adjusted earnings of 78 cents a share, based on the midpoint of its outlook. Wall Street had predicted earnings of 76 cents a share for the fiscal second quarter.
For the full year ahead, HP expects to earn an adjusted $3.20 to $3.60 a share. The midpoint of $3.40 is above the analyst estimates for $3.30.
HPQ stock ranks sixth out of 14 stocks in IBD's Computer Hardware & Peripherals industry group, according to IBD Stock Checkup. But it has a subpar IBD Composite Rating of 47 out of 99. The Composite Rating scores a stock's key growth metrics against all other stocks regardless of industry group.
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