HP raises earnings outlook despite supply chain disruptions

By Dean Seal

HP Inc. reported an upbeat earnings outlook on Tuesday, even as supply chain disruptions and Russian sanctions hit its laptop and printing businesses.

HP said it expects higher adjusted annual profits after sales climbed 3.9% in the last quarter as revenue from the personal computer business surged in its business segment.

Laptop sales to consumers and revenue from HP’s printing business meanwhile tumbled due to industry-wide supply chain issues that are expected to last throughout the year. Shortages of PC components, particularly semiconductors, have caused some manufacturers to reduce inventory levels despite high demand.

HP said on Tuesday that its profits were hit in the last quarter by the end of its operations in Russia, which accounted for about $1 billion in business in 2021.

HP posted earnings of $1 billion, or 94 cents per share, for the quarter ended April 30, compared with $1.2 billion, or 98 cents per share, in the same period a year ago. Excluding one-time items, adjusted earnings were $1.08 per share. Analysts polled by FactSet had expected $1.05 per share.

Revenue rose 3.9% to $16.5 billion, ahead of Wall Street estimates of $16.1 billion, according to FactSet.

The Palo Alto, Calif.-based company raised the midpoint of its adjusted annual earnings forecast by 3 cents to $4.31 per share. It lowered its unadjusted full-year earnings forecast to a range of $3.79 to $3.93 from a previous forecast of $3.87 to $4.07.

Write to Dean Seal at Dean.Seal@WSJ.com

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