HP Inc., opens new tab that surpassed Wall Street projections for second-quarter revenue on Wednesday, predicting a PC industry resurgence as customers upgrade
Like other personal computer manufacturers, HP encountered a surge in sales amid the pandemic as institutions, businesses, and consumers stockpiled up technological goods. However, the company then endured a subsequent two-year decline in sales. This decline is currently decreasing.
HP is anticipating a surge in technological advancements following Microsoft’s opening of a new tab presentation of a plethora of new AI features optimized for a new generation of personal computers last week.
CEO Enrique Lores stated in an interview with Reuters that he anticipates “AI PCs” to account for approximately 10% of HP’s PC sales in the second half of the company’s fiscal year 2024.
“By 2025, the AI PCs will be significantly more significant,” Lores predicted Wednesday.
“Our fiscal year concludes by October’s end.” Thus, we will still be in the infancy of the AI PC space of the next generation.”
Lores reported that education clients drove sales in the second quarter, as schools upgraded their systems following a demand decline of nearly two years caused by COVID-19.
HP reported second-quarter revenue of $12.8 billion, surpassing the average analyst estimate of $12.6 billion, according to LSEG data.
Compared to the same period last year, personal systems segment sales at HP increased by 3% in the reported quarter, including desktop and notebook PCs.
Conversely, printing segment sales decreased by 8%. The organization has revised its adjusted profit for fiscal year 2024 from $3.25 to $3.65 per share to $3.30 to $3.60 per share.
Amid analyst expectations, the midpoint of the full-year range was $3.45, as opposed to $3.43. It anticipates a midpoint adjusted profit per share of 85 cents for the third quarter ending in July, consistent with analysts’ average estimate of 85 cents.