Hewlett-Packard beats by $0.01, beats on revs; guides Q1 EPS in-line; reaffirms FY14 EPS guidance
4:11 PM ET 11/26/13 | Briefing.com
Reports Q4 (Oct) earnings of $1.01 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.00; revenues fell 2.8% year/year to $29.13 bln vs the $27.89 bln consensus.
Co issues in-line guidance for Q1, sees EPS of $0.82-0.86, excluding non-recurring items, vs. $0.85 Capital IQ Consensus.
Co reaffirms guidance for FY14, sees EPS of $3.55-3.75, excluding non-recurring items, vs. $3.65 Capital IQ Consensus.
Q4 segment results:
Personal Systems revenue was down 2% YoY with a 3.0% operating margin. Commercial revenue increased 4% and Consumer revenue declined 10%. Total units were up 2% with Desktops units down 5% and Notebooks units up 3%. Printing revenue was down 1% YoY with a 17.7% operating margin. Total hardware units were up 6% with Commercial hardware units up 9% and Consumer hardware units up 4%. Supplies revenue was down 4%. Enterprise Group revenue was up 2% YoY with a 14.5% operating margin. Networking revenue was up 3%, Industry Standard Servers revenue was up 10%, Business Critical Systems revenue was down 17%, Storage revenue was up 1% and Technology Services revenue was down 6%. Enterprise Services revenue declined 9% YoY with a 4.4% operating margin. Application and Business Services revenue was down 10%, and Infrastructure Technology Outsourcing revenue declined 9%. Software revenue was down 9% YoY with a 30.8% operating margin. Support revenue was up 4%, license revenue was down 24%, professional services revenue was down 13% and software-as-a-service revenue was up 15%. HP Financial Services revenue was down 6% YoY with a 5% decrease in net portfolio assets and a 3% decrease in financing volume. The business delivered an operating margin of 11.2%. HP also utilized $479 million of cash during the quarter to repurchase ~21.5 million shares of common stock in the open market. HP exited the quarter with $12.5 billion in gross cash. HP generated $2.8 billion in cash flow from operations in the fourth quarter, down 31% from the prior-year period.
