“You should take this as a sign of the confidence we have in the future of the company, by increasing [the] 10% dividend in FY ’21, thanks to the strong momentum we are seeing in our business in both print and personal systems, ”Lores said in an interview on“ Mad Money ”with Jim Cramer.
HP shares rose more than 5% after hours after the company posted adjusted earnings of 62 cents per share on revenue of $ 15.3 billion, beating Wall Street analysts’ expectations of 52 cents and $ 14.7 billion, respectively. The quarter was fueled by consumer spending on PCs and printers as Americans outfitted their home offices amid the pandemic, and HP’s business operations continued to languish.
The company said it paid a cash dividend of $ 238 million in the fourth quarter.
Consumer income increased 24% in the three-month period ending October 31, while shopping income declined 12%. As laptop sales jumped 18% to $ 7.41 billion, driven by the work and home learning economy, HP’s total revenue fell 1% year on year on the other.
After four consecutive quarters of declining revenue, HP reported $ 56.4 billion in revenue for fiscal 2020, down 3.6 percent from about $ 58.76 billion the year before.
As for the first fiscal quarter of 2021, HP is forecasting adjusted earnings of 64 cents to 70 cents per share, above the Refinitiv consensus of 54 cents.
Lores is banking on a return to its business activity as the country exits the boundaries of the 2021 pandemic.
“What this crisis has shown is that we are a very resilient company,” he said. “We have a very strong consumer business which is helping us now. … When people return to the office, our business will grow again. ”
HP shares rose 2.6% on Tuesday, closing at $ 21.75 a share before the company reported earnings. While the stock is up 5.84% year-to-date, the stock price remains around $ 2 from its February high before the market crash that was triggered by fears. coronaviruses.