HP Stock is Climbing Fast

HP Stock is Booming
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Record high PC sales seem to be helping HP Inc., reach new milestones. In fact, they managed to top Wall Street estimates for their fourth-quarter results, coming in with a non-GAAP net income of $800. This is less than the year-ago quarter when they were a full $100 million higher.

The company has seen a decrease in revenue of only 1%, which reflects on the record high unit shipments of their PC’s as well as a good quarter for their printers. It seems that consumer demand has increased, especially in premium HP models, gaming computers, Chromebooks and displays and accessories. It seems these areas really managed to get HP moving.

They had vowed that they would increase their overall dividends by 10% for the fiscal-year of 2021 and are offering a guidance of non-GAAP of 64 to 70 cents per share for the fiscal first-quarter. This is higher than the FactSet forecast of only 54 cents a share.

It is perhaps because of the coronavirus that the company is doing so well as computers have become even more essential across the consumer space during this period. As a result, more people are being led to purchase these devices.

“What is becoming evident is that as consumers are locked down, families don’t want to share their PCs with each other and instead want a higher quality experience of their own,” Patrick Moorhead, principal analyst at Moor Insights & Strategy.

This seems to suggest that computer sales and other device and equipment sales for HP just might continue to increase and might continue to drive their sales and their returns even higher. There’s no telling what the company could see moving forward, especially if the pandemic continues for much longer.

It’s likely that people will eventually run out of products that they need to purchase even as the pandemic continues, but there’s no way of knowing that for sure. Especially when accessories and gaming computers seem to be two of the top categories for the company. This could mean that the stock continues to climb as demand for the products likewise continues to rise.

By next year the company is expecting to continue their drive, and analysts are uncertain whether they should be optimistic or a little more pragmatic about their future. What we do know is that right now, the stock seems to be booming and there could be more to come.


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