HP Earnings Okay, Guidance Doesn't Cheer
Hewlett-Packard Co. (NYSE: HPQ) reported adjusted third-fiscal quarter EPS of $1.00 on $29.7 billion in sales after markets closed today. In the same period a year ago, the high-tech giant reported EPS of $1.10 on revenue of $31.2 billion. Third-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.98 and $30.1 billion in revenue.
On a GAAP basis, the company reported an EPS loss of $4.49 which was the result of "the amortization and impairment of purchased intangible assets, the impairment of goodwill, restructuring charges, acquisition-related charges and charges relating to the wind-down of certain retail publishing business activities, including the previously announced charges related to the impairment of goodwill within HP's Services segment, the restructuring program announced in May 2012, and the impairment of the purchased intangible asset associated with the "Compaq" trade name."
The company's president/CEO said:
HP is still in the early stages of a multi-year turnaround, and we're making decent progress despite the headwinds. During the quarter we took important steps to focus on strategic priorities, manage costs, drive needed organizational change, and improve the balance sheet. We continue to deliver on what we say we will do.
Among those "important steps" is firing more than 27,000 workers as the company seeks to cut costs.
For the full 2012 fiscal year, HP expects to take a GAAP net loss per share of $2.23-$2.25. On an adjusted basis, the company forecast EPS of $4.05-$4.07. The consensus forecast had called for $4.07.
HP shares are up about 2% in after-hours trading at $19.62. The current 52-week range is $17.41-$30.00. Thomson Reuters had a consensus analyst price target of $25.73 before today's results were announced. Toll Brothers' price target is due for some adjustment.
Filed under: 24/7 Wall St. Wire, Earnings, PC Companies, Technology Companies Tagged: HPQ