Computer hardware giants Dell Technologies (DELL) and HP (HPQ) topped quarterly earnings estimates thanks to strong sales of personal computers to commercial customers. Dell stock and HPQ stock rose on the news on Wednesday.
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Dell’s PC revenue jumped 35% year over year to $16.5 billion in its fiscal third quarter ended Oct. 29. Meanwhile, HP’s PC sales increased 13% to $11.8 billion in its fiscal fourth quarter ended Oct. 31. Both companies posted quarterly results late Tuesday.
Round Rock, Texas-based Dell earned an adjusted $2.37 a share on sales of $28.39 billion. Analysts had expected Dell earnings of $2.30 a share on sales of $27.37 billion. On a year-over-year basis, Dell earnings rose 17% while sales climbed 21%.
Palo Alto, Calif.-based HP earned an adjusted 94 cents a share on sales of $16.68 billion. Wall Street had predicted HP earnings of 88 cents a share on sales of $15.39 billion. On a year-over-year basis, HP earnings jumped 52% while sales increased 9%.
Dell Stock, HPQ Stock Advance
On the stock market today, Dell stock rose 4.8% to close at 57.30. HPQ stock jumped 10.1% to finish at near 35.44.
Commercial customers were big buyers of PCs last quarter. Dell’s commercial PC sales surged 40% to $12.3 billion while consumer sales advanced 21% to $4.3 billion. HP said its commercial PC sales increased 25% while consumer PC sales decreased 3%.
On a conference call with analysts, HP Chief Executive Enrique Lores said commercial PC demand should remain strong as more offices reopen while the Covid-19 pandemic wanes.
Dell Chief Operating Officer Jeff Clarke concurred. In addition to “a reentry of workers back into the office,” PC sales are being helped by upgrades associated with Microsoft‘s (MSFT) Windows 11 operating system, he said on his company’s earnings call.
Dell and HP also provided sales guidance for the current quarter that topped analyst estimates.
Dell stock ranks second out of 13 stocks in IBD’s Computer Hardware and Peripherals industry group. HPQ stock ranks third in the group.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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