Shares of HP Inc (HPQ) - Get Report rose in after-hours trading Thursday after the company released its fiscal first-quarter earnings ahead of schedule, topping analyst estimates for both revenue and earnings.
The Palo Alto, Calif.-based personal computing company reported quarterly revenue of $15.6 billion, ahead of analyst estimates of $15 billion. The company reported an adjusted profit of 92 cents per share, which easily topped analyst expectations of 66 cents per share, according to FactSet.
It also topped its own previous earnings guidance of between 64 cents and 70 cents per share.
HP Inc. shares were rising 0.78% to $28.40 in after-hours trading after closing the day up 0.75%.
“It was an exceptional start to the year with strong revenue, profit, and EPS growth. The strength of our portfolio and diversity of our businesses is driving our performance and positioning HP well for the future,” said Enrique Lores, HP President and CEO. “Simply put, we are doing what we said we would do -- and our strategy is working.”
For the fiscal second quarter ending in April, HP Inc. expects adjusted earnings to range between 84 cents and 90 cents per share, compared to analyst estimates of 61 cents. For the 2021 fiscal year, HP Inc expects to earn between $3.15 and $3.25 per share, well ahead of analysts' $2.64 per share expectations.
The company's computer segment brought in $10.6 billion, a 7% year-over-year increase, with a 7.1% operating margin.
The higher margin printing segment saw revenue increase 7% to $5 billion at a 19.8% operating margin.
HP generated $900 million of free cash flow in the quarter.