Personal computer company Hewlett-Packard (HP) reported an earnings jump of 7 per cent to $15.65 billion, well above the forecasted figures.
The California-based tech giant’s Q1 2021 results also saw a 34 per cent increase in consumer devices in the company’s Personal Systems category, reaching $10.6 billion.
Total Notebook units were up by 33 per cent while Desktop units slipped by 23 per cent.
HP reported first quarter GAAP diluted net earnings per share (“EPS”) of $0.83, above the previously provided outlook of $0.58 to $0.64 per share.
Revenue for the previous quarter had dipped by 1 per cent, making this quarter’s earnings a mind recovery.
“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.”
HP’s dividend payment of $0.1938 per share in the first quarter resulted in cash usage of $250 million. HP also utilized $1,378 million of cash during the quarter to repurchase approximately 60.2 million shares of common stock in the open market.
As a result, HP returned 179 per cent of its first quarter free cash flow to shareholders. HP exited the quarter with $4.2 billion in gross cash, which includes cash and cash equivalents.
