S&P 500 (NYSE:SPY) component Hewlett Packard Co. (NYSE:HPQ) reported its results for the first quarter. Hewlett-Packard provides products, technologies, software and services to individual consumers, businesses and large enterprises, including customers in the government.
Investing Insights: Warren Buffett Trashes Gold, But What About Silver?
Hewlett Packard Earnings Cheat Sheet for the First Quarter
Results: Net income for the diversified computer systems company fell to $1.47 billion (73 cents per share) vs. $2.6 billion ($1.17 per share) a year earlier. This is a decline of 43.6% from the year-earlier quarter.
Revenue: Fell 7% to $30.04 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Hewlett Packard Co. reported adjusted net income of 92 cents per share. By that measure, the company beat the mean estimate of 87 cents per share. It fell short of the average revenue estimate of $30.72 billion.
Quoting Management: “In the first quarter, we delivered on our Q1 outlook and remained focused on the fundamentals to drive long-term sustainable returns,” said Meg Whitman, HP president and chief executive officer. “We are taking the necessary steps to improve execution, increase effectiveness and capitalize on emerging opportunities to reassert HP’s technology leadership.”
The company’s net income has fallen for two quarters in a row. In the fourth quarter of the last fiscal year, net income fell 90.6% from the year-earlier quarter.
The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of $1.17 versus a mean estimate of net income of $1.13 per share.
Revenue has declined for two quarters in a row. In the fourth quarter of the last fiscal year, revenue declined 3.5% to $32.12 billion from the year-earlier quarter.
Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 95 cents per share, down from $1.09 ninety days ago. For the fiscal year, the average estimate has moved down from $4.55 a share to $4.09 over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories:
To contact the reporter on this story: Derek Hoffman at email@example.com
To contact the editor responsible for this story: Damien Hoffman at firstname.lastname@example.org