HP CEO Enrique Lores says nothing in his company’s latest quarterly figures indicates that economic growth is poised to fall off a cliff this year.
HP beat analysts’ profit forecasts for its second-quarter accounting, driven by strong sales of commercial computers, while customers continue to bring employees back to the office. HP said commercial computer sales rose 18% in its most recent quarter.
“What we are seeing today is still very strong demand from the commercial side,” Lores told Yahoo Finance Live. “As we had expected, we saw some slowdown in consumers. But nothing that tells us it will be a major slowdown in the future.”
Lores’ comments come as investors and executives exercise some caution about the economy’s growth prospects, though experts have begun to call some of these recession fears “exaggerated.”
HP’s bottom line was also boosted by $ 1 billion in share buybacks.
Here’s how HP fared compared to Wall Street estimates in its second fiscal quarter:
The strength of commercial computers comes along with more mixed trends elsewhere in HP’s portfolio. Sales of consumer computers and printers fell 6% and 12%, respectively, compared with the previous year. Sales of commercial printers fell 4 percent.
The profit margin fell by 90 basis points in the HP personal systems segment, but increased by 110 basis points in the printing industry.
The company raised its outlook for the full year despite ongoing supply chain constraints and a declining PC market.
For the third fiscal quarter, HP sees EPS in a range of $ 1.03- $ 1.08. Analysts had estimated earnings of $ 1.04 per share for the current quarter.
The company also raised its full-year earnings outlook to $ 4.24- $ 4.38 per share from $ 4.18- $ 4.38 previously. Wall Street had modeled for full-year earnings of $ 4.26 per share.
“I think consistency is the key message,” Lores added.
Brian Sozzi is editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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