Hewlett-Packard Earnings: Profit and Revenue Dip Depresses Investors

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S&P 500 (NYSE:SPY) component Hewlett-Packard Co. (NYSE:HPQ) reported its results for the fourth quarter. Hewlett-Packard provides products, technologies, software and services to individual consumers, businesses and large enterprises, including customers in the government.

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Hewlett Packard Co. Earnings Cheat Sheet

Results: Reported a loss of $6.85 billion ($3.49 per diluted share) in the quarter. The computers had net income of $239 million or 12 cents per share in the year-earlier quarter.

Revenue: Fell 6.7% to $29.96 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hewlett-Packard Co. reported adjusted net income of $1.16 per share. By that measure, the company beat the mean estimate of $1.14 per share. Analysts were expecting revenue of $29.92 billion.

Quoting Management: “As we discussed during our Securities Analyst Meeting last month, fiscal 2012 was the first year in a multiyear journey to turn HP around,” said Meg Whitman, HP president and chief executive officer. “We’re starting to see progress in key areas, such as new product releases and customer wins. We’re particularly pleased that in Q4, we were able to improve our balance sheet, generating $4.1 billion in operating cash flow, and we returned $384 million to shareholders in the form of share repurchases and dividends.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by one cent in the third quarter, by 7 cents in the second quarter, and by 5 cents in the first quarter.

For four consecutive quarters, revenue has fallen. Revenue declined 4.9% to $29.67 billion in the third quarter. The figure fell 3% in the second quarter from the year earlier and dropped 7% in the first quarter from the year-ago quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 85 cents per share, down from $1.03 ninety days ago. At $4.03 per share, the average estimate for the fiscal year has fallen from $4.06 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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