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HP Q3 Profit, Revenues Trounce Street View

HP Inc. (HPQ), the PC and printer business of the former Hewlett-Packard Co., on Thursday reported a third-quarter earnings and revenues that trounced Wall Street estimates, reflecting strong demand for personal-computers during the COVID-19 period. The PC giant detailed a fourth-quarter outlook that is expected to beat current expectations.

HP's third-quarter profit was $734 million or $0.52 per share, compared with net income of $1.2 billion or $0.79 per share last year.

Adjusted earnings were $0.49 per share, compared with $0.58 per share in the year-ago quarter. Analysts polled by Thomson Reuters expected earnings of $0.43 per share for the quarter.

Revenue declined 2.1% to $14.3 billion from $14.6 billion a year ago, largely due to struggles in the company's printing division. However, revenues trumped analysts expectations by $1 billion. Analysts had a consensus revenue estimate of $13.3 billion.

Personal Systems net revenue was up 7% year over year with total units up 11%. Demand for personal systems during the pandemic increased sharply as people started to work from home and attend classes online.

Looking forward, the company expects fourth-quarter adjusted earnings of $0.50 to $0.54 per share. Analysts had a consensus revenue estimate of $0.50 per share.

HPQ closed Thursday's trading at $18.70, up $0.37 or 2.02%, on the NYSE. The stock further gained $0.55 or 2.94% in the after-hours trade.

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