HP beats street; enterprise group in the red

Hewlett-Packard Co. beat analyst expectations on Tuesday, helped by profits from its printing, PC, and services divisions

HP announced pro forma earnings per share of US$0.29, for its second fiscal quarter of 2003, ended April 30. The consensus from Wall Street analysts had been for pro forma earnings per share of US$0.27, according to Thomson First Call.

Earnings per share compliant with generally accepted accounting principles (GAAP) came in at US$0.22 per share, on net income of US$659 million. That compares with earnings per share of US$0.24 and net income of US$721 million in 2003's first quarter, ended Jan. 31. It also compares with earnings per share of US$0.13 and net income of US$252 million in 2002's second fiscal quarter, ended April 30, 2002, before HP finalized its Compaq Computer Corp. acquisition.

Net revenue came in at US$18 billion, up from US$17.9 billion in 2003's first quarter and up from US$10.6 billion in 2002's second quarter.

"HP delivered a solid quarter with sequential improvement in revenue and non-GAAP operating profit," said HP Chairman and Chief Executive Officer Carly Fiorina, in a statement.

The Palo Alto, California, company reported profits in its Imaging and Printing, Personal Systems, and HP Services divisions. But HP's Enterprise Systems Group remained unprofitable with "nearly break-even results," according to Fiorina said in the statement.

Total revenue for the Enterprise Systems Group was US$3.9 billion, with an operating loss of US$7 million during the quarter -- compared with a loss of $83 million for the quarter before, HP said. The company reported a "significant turnaround in HP NonStop server sales," and "record" HP Superdome server shipments for the quarter, HP said. Revenue for the group was up $100 million from 2003's first quarter.

HP's Imaging and Printing group reported revenue of $5.5 billion -- down slightly from the previous quarter's $5.6 billion.

Revenue for Personal Systems and HP services were US$5.1 billion and US$3.0 billion respectively, holding steady at the same levels reported in HP's first quarter.

For the second half of 2003, HP expects US$36.4 billion in revenue and US$0.62 in pro forma earnings per share, the company said.

Ahead of the earnings release, HP's (HPQ) shares on the New York Stock Exchange closed Tuesday at US$17.05, up 1.01 pecent on the day.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about CompaqCompaqEnterprise Systems GroupFirst CallHewlett-Packard AustraliaHPPrinting GroupSystems GroupWall Street

Show Comments