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Hewlett-Packard (HPQ) Reports In-Line Q2 EPS of 88c; Guides Q3; Sees Job Cuts Increasing

May 22, 2014 3:31 PM EDT Send to a Friend
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(Updated - May 22, 2014 3:58 PM EDT)

(Updated - May 22, 2014 3:33 PM EDT)

Hewlett-Packard Company (NYSE: HPQ) reported Q2 EPS of $0.88, in-line with the analyst estimate of $0.88. Revenue for the quarter came in at $27.3 billion versus the consensus estimate of $27.41 billion.

"With the first half of our fiscal year completed, I'm pleased to report that HP's turnaround remains on track," said Meg Whitman, president and chief executive officer, HP. "With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape."

In May 2012, HP adopted a multi-year restructuring plan designed to simplify business processes, accelerate innovation, lower costs and deliver better results. HP previously estimated that 34,000 positions would be eliminated in connection with the plan. As HP continues to reengineer the workforce to be more competitive and meet its objectives, the previously estimated number of eliminated positions will increase by between 11,000 to 16,000.

Outlook

For the fiscal 2014 third quarter, HP estimates non-GAAP diluted net EPS to be in the range of $0.86 to $0.90 and GAAP diluted net EPS to be in the range of $0.59 to $0.63. Fiscal 2014 third quarter non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.27 per share, related primarily to the amortization of intangible assets and restructuring charges.

*** Consensus views see Q3 EPS of $0.89 and revenue of $27.1 billion.

For fiscal 2014, HP estimates non-GAAP diluted net EPS to be in the range of $3.63 to $3.75 and GAAP diluted net EPS to be in the range of $2.68 to $2.80. Fiscal 2014 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.95 per share, related primarily to the amortization of intangible assets and restructuring charges.

*** The Street sees FY14 EPS of $3.71 and revenue of $111.2 billion.





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