"back in the day" we'd have terrific earnings, and within minutes the stock would get tossed. Someone else, say DEC, would announce layoffs and the market was thrilled that they'd be reducing costs, never mind that their stuff didn't sell.
You've seen this time after time -- bad news gets stock to rise, and vice versa so often it doesn't surprise
So here's the story today
Shares of HP closed 0.7 percent higher at $21.25, and the stock was trading 10 percent higher in immediate after hours. Why? Because HP reported second quarter earnings today, showing earnings per share of $0.55 or $1.1 billion, a 31 percent decline in earnings from a year ago.
Here's the good news: Adjusted earnings came in at $0.87 a share or $1.7 billion, exceeding analyst expectations of $0.81 a share. So the company did terrible, but the analysts thought it'd be worse. Voila, stock goes up.
Net revenue fell 10 percent to $27.6 billion, but cash flow came in at $3.6 billion, a 44 percent jump from the year prior (makes you wonder about HP's use of those creative tax haven strategies).
"We beat the upper end of our non-GAAP diluted EPS outlook for the quarter by $0.05 a 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, CEO and president in a prepared statement.
Meg was simultaneously listed as one of Forbes' TOP 100 women. Sheryl Sandberg, chief operating officer of Facebook Inc., took the No. 6 spot on the annual list. Sandberg, 43, was No. 10 on the list last year.
Five other Bay Area business executives made the top 100 list this year.
- Meg Whitman, CEO, Hewlett-Packard Co. (NYSE: HPQ), No. 15
- Safra Catz, CFO, Oracle Corp. (NASDAQ: ORCL), No. 23
- Susan Wojcicki, SVP, Google Inc.(NASDAQ: GOOG), No. 30
- Marissa Mayer, CEO, Yahoo Inc. (NASDAQ: YHOO), No. 32
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