(Bloomberg) -- HP Inc. increased its full-year earnings outlook on strong personal computer demand while saying it would take a hit to quarterly profit as a result of global sanctions on Russia.
The company said annual profit will be as much as $4.38 per share, an increase of 11 cents a share from the forecast issued in November. Earnings, excluding some items, will be as high as $1.08 per share in the current period ending in April, the company said Monday in a statement. The quarterly outlook includes an impact of three cents due to the global sanctions against Russia, Chief Executive Officer Enrique Lores said in an interview.
Driving that rosy outlook is an increased demand for PCs, a market that HP now expects to be worth as much as $560 billion by 2024, as well as continued success in segments like gaming and 3D printing.
“The market is now significantly bigger than it was before the pandemic,” Lores said. “We don't think we'll continue to grow at the 40% annual growth rates that we have seen in the last two years, but the new market size is sustainable.”
Still, supply chain challenges will continue to affect HP's printing business through the remainder of the year, he said. The Palo Alto, California-based company will work through a growing order backlog that is expected to remain elevated through 2022, Lores said.
Fiscal first-quarter revenue increased 8.8% to $17 billion, compared with analysts' average estimate of $16.5 billion, according to data compiled by Bloomberg. Personal systems sales, which includes PCs, jumped 15% to $12.2 billion. Printing revenue dipped 4% to $4.8 billion, in the period ended Jan. 31.
HP shares have declined 8.8 this year, closing at $34.36 in New York.
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