HP Misses Revenue By Over $3 Billion, Slashes Guidance

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A rough quarter for HP (HPQ), but profit inline.

In earnings released today, the company reported every one of its divisions declined year over year, with the exception of its services group, buoyed by the acquisition of EDS.

An interesting note in the report: Shipments of HP PCs were down only 4%, but notebook revenue was down 13% and desktop revenue down 25%. Margins are getting tighter in the PC biz.

Despite missing revenue targets by over $3 billion, the company hit the mark on profit at $0.93 EPS. Guidance for the next quarter was cut though.

Key Stats:

  • Q1 Revenue: $28.8 billion, below $31.9 billion consenus
  • Q1 EPS: $0.93, square on target
  • Q2 Revenue Guidance: “Will decline approximately two to three per cent from the prior-year period.” Translates to about $27.9 billion, below $31.0 consensus
  • Q2 EPS Guidance: $0.70 to $0.72, below $0.89 consensus

Shares in HPQ were down 1.9% after hours.

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