Hewlett-Packard released the earnings results from its third fiscal quarter after closing bell tonight, posting non-GAAP earnings of 88 cents per share on net revenue of $25.3 billion. Analysts had been looking for earnings of 85 cents per share and $25.44 billion in revenue. In last year’s third fiscal quarter, HP posted non-GAAP earnings of 89 cents per share.
Hewlett-Packard beats and misses guidance
The earnings result came in higher than management’s provided guidance of earnings of between 83 cents and 87 cents per share. GAAP earnings were 47 cents per share, however, missing the guidance of between 50 cents and 54 cents per share. In the same quarter last year, HP posted GAAP earnings of 52 cents per share. The GAAP earnings result includes after-tax separate-related costs, amortization, and impairment costs of $750 million or 41 cents per share.
Hewlett-Packard generated $1.7 billion in cash flow from operations. Revenue from Personal Systems declined 13%, while Printing revenue fell 9%. Enterprise Group revenue grew 2%, while Enterprise Services revenue declined 11%. Software revenue fell 6% year over year, and HP Financial Services revenue fell 6%.
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“HP delivered results in the third quarter that reflect very strong performance in our Enterprise Group and substantial progress in turning around Enterprise Services,” said HP Chairman, President, and CEO Meg Whitman in a statement. “I am very pleased that we have continued to deliver the results we said we would, while remaining on track to execute one of the largest and most complex separations ever undertaken.”
HP provides guidance
HP management guided for fourth fiscal quarter non-GAAP earnings of between 92 cents and 98 cents per share and GAAP earnings of between 12 cents and 18 cents per share. For the full fiscal year, the company expects non-GAAP earnings of between $3.59 and $3.65 per share and GAAP earnings of between $1.87 and $1.93 per share.