HP profit down 32 percent, shares up as results beat estimates

SAN FRANCISCO - Hewlett-Packard Co's quarterly profit slid 32 percent but the world's largest personal computer maker raised the lower end of its full-year outlook after earnings per share beat forecasts, sending its stock 10 percent higher.

 

Net income fell to $1.08 billion, or 55 cents a share, from $1.59 billion, or 80 cents a share, a year earlier.

 

The company earned 87 cents per share on an operating basis during the second quarter on revenue of $27.6 billion.

 

HP had expected earnings of 81 cents a share on revenue of just over $28 billion, according to the average estimate of analysts polled by Thomson Reuters I/B/E/S.

 

Last week, Dell Inc reported a 79 percent slide in profit.

 

The company now expects full-year non-GAAP earnings per share of $3.50 to $3.60. It raised the lower end by 10 cents.

 

HP Chief Financial Officer said in an interview that HP's better-than-expected results in the enterprise services business and printing unit helped drive margin improvement. — Reuters