HP & Dell sales
HP (HPQ) and Dell (DELL) shares rose in off-trade after posting stronger financial results than market analysts had forecast. The companies reported strong demand for PCs and office equipment as people returned to the offices, and large share buybacks.
The world's largest PC makers HP (HPQ) and Dell (DELL) reported their financial results for the quarter ended Oct. 31 after the close of trading on Tuesday.
HP (HPQ) shares, up 30.9 percent since the start of 2021, were up nearly 6 percent in after-hours trading after the report.
Dell (DELL) shares, up 47% since the start of 2021, in turn rose 1.5%.
HP financial report
HP's earnings per share for the fiscal fourth quarter ended Oct. 31 rose 52% to $0.94, above analysts' forecasts of $0.88.
Total sales revenues were up 9%.
The strong results were driven by 13% growth in the segment, which includes both consumer and commercial personal computers. Sales in this segment accounted for $11.8 billion.
For the full fiscal year 2021, HP posted revenues of $63.5 billion.
HP repurchased $1.8 billion worth of its common stock last quarter. For the full year, HP repurchased $6.2 billion worth of stock, including $938 million in dividends. HP expects to buy back at least $4 billion more shares in fiscal 2022.
HP forecasts
In the first quarter of FY. 2022, which ends in January, HP expects earnings of $0.99 to $1.05 per share.
HP has kept its forecast for full fiscal 2022 at $4.07 to $4.27 earnings per share.
Dell financial report
Dell's fiscal third-quarter profit rose 17% to $2.3.
Total revenues rose 21% to $28.4 billion, better than analysts' forecast of $27.4 billion.
Dell said revenues from its PC division (Client Solutions Group) rose 35% to $16.5 billion, and about $1.4 billion.
Dell forecasts
For the fourth quarter, Dell expects revenues of $27 billion to $28 billion, up 12% to 16%, and earnings of $1.85 to $2.05 per share.
Dell is introducing a new capital return policy that includes returning 40% to 60% of free cash flow to shareholders on share buybacks and dividend payments. The company said it repurchased about $100 million of its shares after completing the VMware acquisition. Dell said it expects to pay a dividend of about $1 billion a year, with the exact rate to be announced in the first quarter of the fiscal year. At $1 billion, Dell's dividend yield will be about 2.5%.
