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Hewlett-Packard Conference Call Highlights

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Hewlett-Packard (NYSE: HPQ) reported its third quarter earnings on Thursday. Shares of the company are up five percent.

Below are some key highlights from its conference call:

• Revenue for the company was $27.6 billion, up 1 percent.
• Our year-to-date free cash flow now stands at $7.4 billion.
• As a result, our operating company net cash position is $4.9 billion.
• We also returned $881 million to shareholders in the form of share repurchases and dividends.
• Against that back drop, our outlook for non-GAAP diluted net earnings per share for the full year will be $3.70 to $3.74.
• EMEA revenue was $10 billion, up 5 percent year-over-year.
• Gross margin for the quarter was 24 percent.
• Supplies revenue was $3.7 billion, down 5% over the prior year and made up 65.5 percent of Printing revenue.

Global:

• By region, Americas revenue was $12.3 billion, down 1 percent year-over-year, or flat in constant currency.
• The U.S. was approximately flat on the back of double digit growth in Personal Systems.
• Brazil was up moderately, while other countries in the region declined.
• EMEA driven by some recovery in mature Western economies, partially offset, primarily, by significant weakness in Russia.

Guidance:
• In Enterprise Services, given the incremental weakness we saw in Q3 from EMEA, we are updating our full year revenue outlook.
• We now expect full year revenue to decline 6 percent to 7 percent over the prior year.
• From a macroeconomic perspective, we expect geopolitical uncertainty to continue, impacting specific territories such as Russia, as well as increased competitive pressures likely in China.
• From a macroeconomic perspective, we expect geopolitical uncertainty to continue, impacting specific territories such as Russia, as well as increased competitive pressures likely in China.
• From a GAAP perspective, we expect full year GAAP diluted net earnings per share to be in the range of $2.75 to $2.79.

Posted-In: Earnings News Guidance

 

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