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HP underwhelms with its earnings though notebook sales are a bright spot - AFTER HOURS

Oops, it did it again (disappointed the market that is). Also featured: PVH, Guess? Williams-Sonoma
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Retailers 3 Computer Makers 0

It's been a mixed results season for clothing sellers but Guess? Inc (NYSE:GES) was definitely one of the winners in the second quarter.

Net income rose to US$16.05mln, equivalent to 19 cents a share, from US$12.31mln (15 cents) in the same period of 2016.

Analysts had penciled in a figure of 10 cents for earnings per share, so unsurprisingly market makers whacked the share price of Guess? up sharply to US$14.20 in after-hours trading; the stock closed at US$12.48 in regular trading on Wednesday.

Revenue rose 5.3% to US$573.69mln from US$544.96mln the year before.

Williams-Sonoma Inc (NYSE:WSM) was another retailer in demand after open-outcry trading finished yesterday, after it posted second quarter earnings per share (EPS) of 61 cents, up three cents on a year earlier and a couple of cents higher than analysts had been expecting.

Revenue climbed 3.4% to US$1.2bn from US$1.16bn the previous year.

The shares were up 7.1% at US$46.50 in screen-based trading.

PVH Corp (NYSE:PVH), the company behind the Calvin Klein and Tommy Hilfiger brands, surpassed expectations with its second quarter earnings, prompting it to raise its earnings outlook for the current financial year.

Second quarter adjusted EPS of US$1.69 beat the consensus estimate by four cents and was even above the company's own guidance range of US$1.60-US$1.63.

Revenue from the Calvin Klein range rose 8% from a year earlier to US$786mln, while the Tommy Hilfiger line's sales climbed 4% to US$892mln.

The shares were 4.6% higher at US$125.60 in after-hours trading.

A name change from Hewlett-Packard to HP Inc (NYSE:HPQ) does not seem to have changed the computer giant's luck, as it once again underwhelmed the market with its financial performance.

Sales of notebook computers were a bright spot in the three months to the end of July, with sales up 16.4%, but sales of desktop computers dipped. Revenue for the group as a whole was up 12% year-on-year to US$8.40bn.

Net earnings from continuing operations in what was the third quarter of the company's financial year fell to US$696mln from US$843mln in the corresponding period of last year.

EPS fell to 41 cents from 49 cents the year before. The group indicated it expected full-year EPS would be somewhere in the US$1.63-US$1.66 range.

As disappointment from HP go, it was not one of its horror stories, and the stock was only down 1.9% in after-hours trading.

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