HP released its second fiscal quarter earnings this afternoon, hitting its profit targets but missing on revenue.
HP reported revenue of $27.6 billion for the three months that ended on April 30. Earnings per share were 87 cents.
While it isn’t as cool as Apple and it doesn’t make games like Microsoft, HP is a critical piece of the electronics industry, as it straddles both the consumer and enterprise markets across a bunch of product lines. The company has $120 billion in annual revenue (the biggest in the industry by that measure) and more than 330,000 employees. It has made 70 acquisitions in the past 15 years, but its stock price has been hurting lately.
Analysts estimated HP would report non-GAAP earnings of 81 cents a share on revenues of $28.08 billion. Analysts had previously expected third-fiscal quarter earnings of 84 cents a share and full-year earnings of $3.49 a share.
Last quarter, the company had net income of $1.2 billion for the first quarter of 2013, compared to $1.5 billion in the same quarter a year ago, as revenue fell to $28.4 billion. That translates to $0.82 per share, which is down 11 percent from 2012 but is well above HP’s previously provided guidance of $0.68 to $0.71 per share.
It’s better than HP’s outlook in November, when the company had just reported bad numbers and came clean on its awful acquisition of Autonomy. And it’s much better than the second quarter of 2012, when HP faced its biggest-ever quarterly loss.
HP has been dealing with a couple of negative trends. The PC market has slowed down because of rising tablet sales. And it has also had to deal with a downward shift in printing habits as the growing use and accessibility of the internet makes paper less necessary. HP’s financial services business has been growing, but most of the other parts have been weak. On top of that, HP hasn’t been participating
Whitman has previously stated that HP will not be releasing a new smartphone until 2014. HP is reportedly working on Android-based tablets and phones.
Filed under: Business, Enterprise 
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