Hewlett-Packard Earnings: Here’s Why Investors are Excited Now

Hewlett-Packard Company (NYSE:HPQ) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 11.59%.

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Hewlett-Packard Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 11.22% to $0.87 in the quarter versus EPS of $0.98 in the year-earlier quarter.

Revenue: Decreased 10.14% to $27.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hewlett-Packard Company reported adjusted EPS income of $0.87 per share. By that measure, the company beat the mean analyst estimate of $0.81. It missed the average revenue estimate of $28.12 billion.

Quoting Management: “We beat the upper end of our non-GAAP diluted EPS outlook for the quarter by $0.05 per share, driven by better than expected performance in Enterprise Services and Printing, coupled with the accelerated capture of restructuring savings and improvement in our operations,” said Meg Whitman, HP president and chief executive officer.

Key Stats (on next page)…

Revenue decreased 2.74% from $28.36 billion in the previous quarter. EPS increased 6.1% from $0.82 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.84 and has not changed. For the current year, the average estimate has moved up from a profit of $3.32 to a profit of $3.49 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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