HP CEO Enrique Lores on CNBC on Tuesday forecast a vivid future for his firm after it determined to extend the quantity of earnings it shares with stockholders.
The PC maker boosted its quarterly money dividend by double digits to only over 19 cents per share, which it introduced as half of its better-than-expected outcomes in the last quarter of HP’s 2020 fiscal yr.
“You should take this as a sign of the confidence we have in the future of the company, increasing [the] dividend by 10% in fiscal year ’21, driven by strong momentum we see in our businesses in print and personal systems,” Lores mentioned in a “Mad Money” interview with Jim Cramer.
HP shares have been up greater than 5% in after-hours buying and selling after the firm posted adjusted earnings of 62 cents per share on income of $15.Three billion, beating Wall Street analysts’ expectations of 52 cents and $14.7 billion, respectively. The quarter was powered by shopper spending on PCs and printers as Americans geared up their house workplaces amid the pandemic, and HP’s industrial enterprise continued to languish.
The firm mentioned it paid a money dividend of $238 million in the fourth quarter.
Consumer revenues grew by 24% throughout the three-month interval ending Oct. 31, whereas industrial revenues declined by 12%. While pocket book gross sales surged 18% to $7.41 billion, pushed by the work- and learn-from-home financial system, HP’s complete revenues have been down 1% yr over yr.
After 4 straight quarters of income declines, HP reported $56.four billion in income for the 2020 fiscal yr, down 3.6% from about $58.76 billion the yr prior.
As for the first fiscal quarter of 2021, HP is projecting adjusted earnings of 64 cents to 70 cents per share, above the Refinitiv consensus of 54 cents.
Lores is banking on a return in its industrial enterprise as the nation emerges from the limitations of the pandemic in 2021.
“What this crisis has shown is that we are a very resilient company,” he mentioned. “We have a very strong consumer business that is helping us now. … When people will go back to the office, our commercial business will grow again.”
HP shares rose 2.6% Tuesday, closing at $21.75 per share earlier than the firm posted earnings. While the inventory is up 5.84% yr to this point, the share worth stays about $2 away from its February excessive earlier than the marketwide meltdown that was sparked by coronavirus fears.