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HP to Return $16B to Shareholders; Shares Pop 8%

By Kim Khan

Investing.com - HP (NYSE:HPQ) pleased investors on two fronts, sending shares higher Tuesday.

The stock jumped 8% in morning trading.

HP topped earnings expectations after the bell Monday and announced a plan to return $16 billion to in capital to shareholders.

The company said it reported a fiscal first-quarter profit of 65 cents per share, excluding items, on revenue of $14.62 billion.

Analysts were looking for earnings of 54 cents per share and revenue of $14.63 billion, according to forecasts compiled by Investing.com.

Full-year guidance for a profit of $2.33 to $2.43 per share, ex items, compared with the S&P Capital IQ consensus estimate.

The company added taht it authorized a capital return program for $16 billion between fiscal 2020 and fiscal 2022. HP boosted its share repurchase authorization to $15 billion from the previously announced $5 billion and said the capital return would involve buybacks of at least $8 billion over 12 months.

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