Hewlett-Packard Company Beats First-Quarter Estimates, Still Fails to Impress Investors
Hewlett-Packard just reported results for the first quarter of fiscal year 2014.
The information was inadvertently released about half an hour before Thursday's closing bell, complete with a separate collection of financial data and slides for tonight's conference call with analysts. HP shares had been trading 1.5% higher when the premature news hit the wires, and then reversed course to close Thursday's session 2.3% below the morning's opening price.
HP's decline continued in after-hours trading, falling another 1.5% at press time. HP shares had gained 9% in the three months before this report, outperforming the S&P 500 index by a 6% margin.
The computing giant saw sales slipping to $28.2 billion, a 1% year-over-year decline. Non-GAAP earnings increased by 10%, landing at $0.90 per share. Both numbers exceeded analyst expectations, which pointed to earnings of $0.88 per share on roughly $27.4 billion in sales.
However, the midpoints of management's earnings outlooks for the second quarter and full year fell below the current Street views.
HP's printing and personal systems group saw sales rising 1% year over year, right alongside the enterprise products segment. Software sales fell 4%, enterprise services declined 7%, and HP's financial services took a 9% hit to its top-line revenue.
"HP is in a stronger position today than we've been in quite some time," said CEO Meg Whitman in a prepared statement. "Innovation is igniting our comeback, and at a time when many of our competitors are confronting new challenges, two years of turnaround work is setting us up for an exciting future."
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