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Hewlett-Packard (HPQ) Reports In-Line Q3 EPS; Issues In-Line Q4 EPS Outlook

August 20, 2014 4:04 PM EDT

(Updated - August 20, 2014 4:07 PM EDT)

Hewlett-Packard Company (NYSE: HPQ) reported Q3 EPS of $0.89, in-line with the analyst estimate of $0.89. Revenue for the quarter came in at $27.6 billion versus the consensus estimate of $27 billion.

"Overall, I'm very pleased with the progress we've made," said Meg Whitman, chairman, president and chief executive officer, HP. "When I look at the way the business is performing, the pipeline of innovation and the daily feedback that I receive from our customers and partners, my confidence in the turnaround grows stronger."

Segment results:

  • Personal Systems revenue was up 12% year over year with a 4.0% operating margin. Commercial revenue increased 14% and Consumer revenue increased 8%. Total units were up 13% with Desktops units up 9% and Notebooks units up 18%.
  • Printing revenue was down 4% year over year with an 18.4% operating margin. Total hardware units were down 5% with Commercial hardware units down 2% and Consumer hardware units down 6%. Supplies revenue was down 5%.
  • Enterprise Group revenue was up 2% year over year with a 14.0% operating margin. Industry Standard Servers revenue was up 9%, Storage revenue was down 4%, Business Critical Systems revenue was down 18%, Networking revenue was up 4% and Technology Services revenue was down 3%.
  • Enterprise Services revenue was down 6% year over year with a 4.1% operating margin. Application and Business Services revenue was down 4% and Infrastructure Technology Outsourcing revenue declined 8%.
  • Software revenue was down 5% year over year with a 21.2% operating margin. License revenue was down 16%, support revenue was flat, professional services revenue was down 3% and software-as-a-service (SaaS) revenue was up 8%.
  • HP Financial Services revenue was down 3% year over year with a 1% increase in net portfolio assets and a 14% increase in financing volume. The business delivered an operating margin of 9.2%.

For the fiscal 2014 fourth quarter, HP estimates non-GAAP diluted net EPS to be in the range of $1.03 to $1.07. Consensus expectations call for $1.05.

For fiscal 2014, HP estimates non-GAAP diluted net EPS to be in the range of $3.70 to $3.74. The Street is at $3.72.

For earnings history and earnings-related data on Hewlett-Packard Company (HPQ) click here.



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