HP (HPQ 22.65, +1.26) has jumped 5.9% in pre-market after beating quarterly expectations and guiding ahead of estimates.
The legacy technology company reported above-consensus first quarter earnings of $0.48 per share on a 14.5% year-over-year increase in revenue to $14.52 billion, which was also better than expected.
Operating margin ticked down 10 basis points to 7.0%.
The company generated $996 million of cash from operating activities, up 29.9% year-over-year.
Looking at the segment breakdown, Personal Systems revenue rose 14.9% year-over-year to $9.44 billion while Printing revenue grew 13.7% to $5.08 billion. The company recorded across the board growth in the Personal Systems segment. Notebooks revenue grew 14.4% to $5.60 billion while Desktops revenue increased 16.6% to $2.96 billion. Workstations revenue grew 10.6% to $543 million and Other revenue rose 15.3% to $347 million.
In the Printing segment, Supplies revenue rose 10.4% to $3.35 billion while Commercial Hardware revenue jumped 27.5% to $1.07 billion. Consumer Hardware revenue increased 11.0% to $655 million.
Looking ahead, the company expects that earnings for the first quarter will be between $0.45 and $0.49 per share, which is ahead of market expectations. For the full year, HP expects to report earnings between $1.90 and $2.00 per share, which is also better than the market expects.