HP's 3Q Earnings Miss Wall Street Expectations - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

HP's 3Q Earnings Miss Wall Street Expectations

The company also said its current quarter would fall below expectations.

SAN JOSE, Calif. (AP) -- Computer and printer giant Hewlett Packard Co. reported a 9 percent jump in third-quarter revenues Thursday, but the results fell short of expectations in part because of what the company termed "unacceptable execution" by its server and storage business. HP also said its current quarter would fall below expectations.

The company said other divisions--including personal computers, software, services and printers--performed well, but those results were eclipsed by "management missteps" in the enterprise business.

"These solid results were overshadowed by unacceptable performance in enterprise systems and storage," said Carly Fiorina, HP's chief executive. "Here, execution issues cost us, and we are therefore making immediate management changes."

She did not immediately outline the personnel moves.

For the three months ended July 31, HP earned $586 million, or 19 cents per share. That's nearly double the $297 million, or 10 cents per share, in the same period last year. Excluding items, the said it earned 24 cents per share compared with 23 cents per share a year earlier.

Sales grew 9 percent to $18.9 billion in the third quarter.

Wall Street analysts were expecting earnings of 31 cents per share on sales of $19 billion, according to a survey by Thomson First Call.

HP also said per-share earnings in the current quarter will be between 35 cents and 39 cents. Sales are expected to be between $21 billion and $21.5 billion.

Analysts were expecting a per-share profit of 43 cents per share on sales of $21.3 billion.

The company said revenue in personal systems grew 19 percent year-over-year, and sales in imaging and printing rose 8 percent. The company's enterprise servers and storage posted a 5 percent revenue decline, but sales in HP services and software grew 12 percent and 17 percent, respectively.

The results were announced before the markets opened. Shares of HP closed at $19.52, down 43 cents, in Wednesday trading on the New York Stock Exchange.

Palo Alto-based HP was scheduled to report its results Aug. 18.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Augmented Analytics Drives Next Wave of AI, Machine Learning, BI
Jessica Davis, Senior Editor, Enterprise Apps,  3/19/2020
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Register for InformationWeek Newsletters
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll