Hewlett-Packard Shares Shaky On Q3 Report
Hewlett-Packard (NYSE: HPQ) shares are volatile after the company announced better-than-expected third quarter earnings and raised guidance.
Revenue beat analyst expectations by 2.3 percent at $27.6 billion. This is a 1.4 percent improvement from the same period last year.
Personal systems sales increased 12 percent on an 18 percent climb in notebook unit sales. However, growth was dragged down by a shrinkage in the printing and enterprise service businesses.
Earnings were inline at $0.89 per share -- a 3.5 percent year over year increase in earnings compared to a 33 percent surge in stock price suggests significant multiple expansion.
CEO Meg Whitman said she is “very pleased” with the quarter and her “confidence in the turnaround,” is growing stronger.
Hewlett-Packard also raised its full year 2014 guidance. EPS is expected in the range of $3.70 to $3.74, compared to $3.63 to $3.75 previously. The midpoint of the new estimate is inline with Wall Street’s expectation.
Fourth quarter earnings are expected between $1.03 and $1.07 per share.
The issue was last trading at $34.65, down 0.5 percent in extended-hours trading.
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