Benzinga | May 28, 2021 10:21AM EDT

Dell, HP Expect Semiconductor Crisis To Constraint 2021 PC Supply: Reuters

* Dell Technologies Inc (NYSE:DELL) and HP Inc (NYSE:HPQ) estimated the ongoing semiconductor chip crisis to affect their laptop supply for 2021, despite beating the analyst consensus for their Q1 and Q2 FY21 results, Reuters reports.

* Dell CFO Thomas Sweet estimated the rising chip procurement costs to hit their current quarterly operating income by low to mid-single digits and affect their subsequent quarter revenue growth.

* HP estimated the crisis to restrict its personal computing device and printer supply by at least 2021 end.

* The companies remain optimistic following continued higher remote working and schooling demands.

* Dell's Q1 client solutions group revenue encompassing desktops, notebooks, and tablets grew 20% to $13.31 billion. Revenue increased 12% to $24.49 billion, beating the analyst consensus of $23.4 billion.

* HP's Q2 PC-related sales increased 27% to $10.6 billion, while notebook sales surged 47% to $7.5 billion. It posted a revenue of $15.9 billion, beating the analyst consensus of $15 billion.

* Previously, Dell CEO Michael S. Dell, Intel Corp (NASDAQ:INTC) CEO Pat Gelsinger, and Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) Chair Mark Liu estimated the crisis to loom beyond 2021.

* Price action: HPQ shares traded lower by 8.35% at $29.42 on the last check Friday.