HP Results Beat Market Expectations, All Segments On Fire
According to an article on Seeking Alpha, Hewlett-Packard (NYSE: HPQ) posted Q2 earnings of $0.91 (GAAP) a share today, the non-GAAP EPS being $1.09. While the analysts were expecting an EPS of $1.05, the GAAP EPS figure stood at $0.71 in the year ago period. HP’s Q2 profits jumped 25% to $2.9 billion.
The computer hardware maker’s net revenue rose 13% to $30.8 billion, with a 4% contribution from favorable currency exchange benefits. Among the units that performed particularly well were the enterprise storage and servers unit, whose sales grew by 31%, the PC groups, whose revenue climbed 21% and the printer groups, which saw 8% revenue growth. Not to forget, HP Networking had a revenue growth of 58%, boosted by the 3Com acquisition.
Cathie Lesjak, HP EVP and CFO said, “HP drove double-digit revenue growth and improving profits, contributing to our twentieth consecutive quarter of year-over-year operating margin expansion… With the improving demand environment, we are accelerating investments for growth while raising our full-year outlook.”
HPQ projected its full fiscal year revenue growth at about 8%-9% and anticipated EPS at $3.76-$3.81, slightly lower than the previous guidance. Although the guidance for the next quarter included Palm (NASDAQ: PALM), it does not reflect any revenue from the acquisition. HPQ ‘is firing on all cylinders and swimming in cash.’ This is underscored by the fact that the company recently repurchased 35 million shares for $1.8 billion.
Shares of HPQ fell 1.545 to close at $46.79 yesterday.
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