- H-P (NYSE:HPQ) is guiding for FQ4 EPS of $1.03-$1.07, in-line with a $1.05 consensus.
- PC sales rose 12% Y/Y in FQ3 to $8.6B, better than FQ2's 7% growth and fueling the revenue beat. Commercial PCs +14%, consumer +8%. Also helping: enterprise hardware division sales rose 2% to $6.9B, a turnaround from FQ2's 2% drop.
- Enterprise services remains weak, falling 6% to $5.6B after dropping 7% in FQ2. Software -5% to $959M, worse than FQ2's flat growth. Printers -4% to $5.6B, an even decline with FQ2. Financial services -3% to $855M, after dropping 2% in FQ2.
- A mix shift towards PCs appears to have pressured EPS. The PC division has only a 4% op. margin, lower than H-P's total non-GAAP op. margin of 8.5%.
- Printing hardware units and supplies revenue both fell 5%. x86 server revenue +9%, mission-critical servers -18% (Itanium weakness), storage -4%, networking +4%. Software license revenue (high-margin) fell a steep 16%.
- GAAP gross margin rose 70 bps Y/Y to 24%. SG&A spend +3% to $3.4B; R&D +11% to $887M. $582M was spent on buybacks.
- HPQ -1.1% AH. FQ3 results, PR.
PC growth drives H-P's revenue beat; guidance in-line
Check out Seeking Alpha’s new Earnings Center »
From other sites
at 4-traders.com (Wed, 3:02AM)
at 4-traders.com (Tue, 12:17PM)
at Zacks.com (Mar 20, 2015)
at CNBC.com (Mar 19, 2015)
at Nasdaq.com (Mar 16, 2015)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs