H-P's FQ2 guidance light, FY14 guidance in-line. PC sales improve.

H-P (HPQ) expects FQ2 EPS of $0.85-$0.89 vs. an $0.89 consensus, and FY14 (ends in October) EPS of $3.60-$3.75 vs. a $3.67 consensus.

PC sales rose 4% Y/Y in FQ1 after dropping 2% in FQ4, and contributed to a strong revenue beat. Desktops -3%, notebooks +5%. Business PCs +8%, consumer PCs -3%.

Printing -2% vs. -1%. Hardware +5% (drives future supplies sales), supplies -3%.

Enterprise hardware +1% vs. +2%, enterprise services -7% vs. -9%, software -4% vs. -9% with a 6% license revenue drop. Financial services -9% vs. -6%.

$565M was spent on buybacks. Job cuts led sales/marketing spend to fall 3% Y/Y to $3.2B. R&D +2% to $811M.

HPQ -0.6% AH. FQ1 results, PR.

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Comments (6)
  • eager1
    , contributor
    Comments (166) | Send Message
    Any word on their plans for 3D printing?
    20 Feb 2014, 04:59 PM Reply Like
  • RationalThought35
    , contributor
    Comments (5) | Send Message
    It seems like Y/Y comparisons are being used to mask weakness in trend which would seem to be better indicated by the Q/Q numbers which are negative across the board both on revenues and more importantly in margins.


    The analyst Q/A should be instructive, hopefully questions should provide insights into growth prospects, especially in margins as opposed to engineered EPS through cost cutting and share buybacks.
    20 Feb 2014, 10:15 PM Reply Like
  • piggysun
    , contributor
    Comments (244) | Send Message
    what are you talking about? it was shopping season last quarter. This quarter the numbers are impressive. Stock is going up tomorrow, breaking $30 resistance.
    20 Feb 2014, 11:37 PM Reply Like
  • Dipanmoy
    , contributor
    Comment (1) | Send Message
    You don't compare a qtr with previous qtr because market behaves differently in different qtrs. You can't compare the festive season with the qtr prior to it. Generally, analysts compare the qtr with the same qtr the previous year.
    21 Feb 2014, 09:22 AM Reply Like
  • Mr. Sorry
    , contributor
    Comments (46) | Send Message
    He guy piggysun the only important sector is printing (all over cash cow) and services and minus is not good. I ll never spend money in such a company
    21 Feb 2014, 02:35 AM Reply Like
  • hneumann
    , contributor
    Comments (630) | Send Message
    PC sales improve: INTC stock should go higher.
    21 Feb 2014, 07:10 AM Reply Like
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