Hewlett-Packard hits earnings target, raises outlook
Published: Wednesday, 21 Aug 2013 | 4:06 PM ET
Hewlett-Packard hit its earnings target but reported an 8-percent drop in revenue as PC sales continued to slide. However, the computer hardware and software maker raised its outlook.
The computer and IT company's shares dropped 3 percent after the closing bell, following the news.
HP also announced a few management changes, as expected: The company is combining its marketing and communications organizations under the leadership of Chief Communications Officer Henry Gomez. Chief Operating Officer Bill Veghte will become executive vice president and general manager of the HP Enterprise Group. Former Enterprise Group head Dave Donatelli will take on a new role focused on identifying early-stage technologies. Was this entirely expected?
Earnings excluding items decreased to 86 cents per share from $1.00 a share in the year-earlier period
Revenue eased 8 percent to $27.23 billion from $29.67 billion a year ago.
Analysts had expected the company to report earnings excluding items of 86 cents a share on $27.29 billion in revenue, according to a consensus estimate from Thomson Reuters.
HP raised its outlook: It now expects adjusted EPS for the year of $3.53 to $3.57. It had previously expected adjusted EPS of $3.50 to $3.60.
The company forecast net EPS of $2.67 to $2.71, versus a prior range of $2.50 to $2.60.
The declining PC market has been one problem for HP, but the company has also had trouble getting the traction in the storage and networking businesses that some of its competitors have. PC shipments were down 11 percent for the fifth straight drop in the previous quarter.