Hewlett Packard Co. Earnings Cheat Sheet: Revenue Slips After Increasing Four Quarters in a Row, Net Income Declines

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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 Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the diversified computer systems company fell to $239 million (12 cents per share) vs. $2.54 billion ($1.10 per share) a year earlier. This is a decline of 90.6% from the year earlier quarter.

Revenue: Fell 3.5% to $32.1 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: HPQ reported adjusted net income of $1.17 per share. By that measure, the company beat the mean estimate of $1.13 per share. It fell exactly in line with the average revenue estimate of $32.1 billion.

Quoting Management: “HP has a great opportunity to build on our strong hardware, software, and services franchises with leading market positions, customer relationships, and intellectual property,” said Meg Whitman, HP president and chief executive officer. “We need to get back to the business fundamentals in fiscal 2012, including making prudent investments in the business and driving more consistent execution.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the third quarter, net income rose 8.6% from the year earlier, while the figure increased 4.7% in the second quarter, 15.8% in the first quarter and 3.7% in the fourth quarter of the last fiscal year.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 7.5%.

The company beat estimates last quarter after being in line with expectations in the third quarter with net income of $1.10 per share.

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 $1.12 per share, down from $1.31 ninety days ago. For the fiscal year, the average estimate has moved down from $5.01 a share to $4.84 over the last ninety days.

Competitors to Watch: Dell Inc. (NASDAQ:DELL), Apple Inc. (NASDAQ:AAPL), Oracle Corporation (NASDAQ:ORCL), Microsoft Corporation (NASDAQ:MSFT), Cisco Systems, Inc. (NASDAQ:CSCO), Intl. Business Machines Corp. (NYSE:IBM), EMC Corporation (NYSE:EMC), Super Micro Computer, Inc. (NASDAQ:SMCI), RadiSys Corporation (NASDAQ:RSYS), and Silicon Graphics Intl. Corp (NASDAQ:SGI).

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

 

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