HP Earnings: Another Beat And A Good Sign That Meg Whitman's Turnaround Is Working

Meg WhitmanHPHP CEO Meg Whitman

Hewlett Packard just reported quarterly earnings.

It’s a beat.

HP reported revenue of $US28.2 billion, down only 1% from the prior-year period.

Quarterly non-GAAP earnings per share of 90 cents, up 10% from the prior-year period. That beat also topped the company’s guidance of 82 cents to 86 cents per share. (GAAP EPS was 74 cents up 17% from the year-ago period.)

Analysts were expecting revenues to decline about 4% to $US27.19 billion, while earnings per share were expected to increase 2.4% to 84 cents

This is two quarters in a row that HP beat analysts expectations on both earnings and revenue. While expectations were modest, this is a good sign that CEO Meg Whitman’s multi-year plan to turn HP around is going in the right direction.

For its upcoming quarter, analysts were expecting 89 cents EPS and revenue of 26.93 billion.

Here’s what HP’s is saying about the next quarter. The stock is down just a tad in after hours trading because this outlook comes in on the low-end of expectations.

For the fiscal 2014 second quarter, HP estimates non-GAAP diluted net EPS to be in the range of $US0.85 to $US0.89 and GAAP diluted net EPS to be in the range of $US0.62 to $US0.66. Fiscal 2014 second quarter non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $US0.23 per share, related primarily to the amortization of intangible assets and restructuring charges.

For fiscal 2014, HP estimates non-GAAP diluted net EPS to be in the range of $US3.60 to $US3.75 and GAAP diluted net EPS to be in the range of $US2.85 to $US3.00. Fiscal 2014 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $US0.75 per share, related primarily to the amortization of intangible assets and restructuring charges.

Here’s a rundown of how each unit did. After a brutal 2013, PC sales were up this quarter, thanks to enterprises, if not consumers.

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