Hewlett-Packard released the earnings results from its second fiscal quarter after closing bell tonight, posting non-GAAP earnings of 87 cents per share. That was toward the high end of management’s guidance of between 84 cents and 99 cents per share. The company posted net revenue of $25.5 billion for the quarter, a 7% year over year decline.
Analysts had been expecting earnings of 86 cents per share on $25.68 billion in revenue. In last year’s second quarter, HP posted earnings of 88 cents per share on $27.3 billion in revenue.
Key metrics from Hewlett-Packard’s earnings report
HP posted GAAP earnings of 55 cents per share, missing the previously provided guidance of between 57 cents and 61 cents per share. In the same quarter last year, Hewlett-Packard’s GAAP earnings were 66 cents per share. The GAAP results included 32 cents per share in first-time expenses related to separation costs, restructuring, acquisitions and amortization. Cash flow from operations was $1.5 billion, compared to $3 billion last year.
Hewlett-Packard’s Personal Systems recorded a 2% decline in revenue from last year, while its Printing revenue fell 7% year over year. Revenue from the Enterprise Group declined 1% year over year, while Enterprise Services revenue fell 16% compared to last year. Revenue from Software fell 7% year over year, while revenue from HP Financial Services declined 7% year over year.
HP provides guidance
For the third quarter of fiscal 2015, Hewlett-Packard management said they expect non-GAAP earnings of between 83 cents and 87 cents per share and GAAP earnings of between 50 cents and 54 cents per share. The non-GAAP earnings estimates exclude about 33 cents per share related to costs associated with the separation, restructuring and the recent acquisition. Analysts are expecting non-GAAP earnings of 87 cents per share for the current quarter.
Hewlett-Packard reported that its separation into two separate Fortune 50 companies is on track as previously expected. The company also named some leadership appointments for the companies. Cathie Lesjak will be HP Inc.’s chief financial officer, while Tim Stonesifer will hold the post for Hewlett Packard Enterprise. Chris Hsu will be HPE’s chief operating officer.
Shares of Hewlett-Packard were up 1.42% at $34.31 per share as of this writing.