- HP's PC and printing ops, now known as HP Inc. (NYSE:HPQ), had FQ4 revenue of $12.66B, down 14% Y/Y and missing a $12.86B consensus. The business' op. income fell 18% to $1.16B.
- PC/printing details: PC revenue -14% Y/Y to $7.7B, with a 3.8% op. margin. Printing revenue -14% to $5B, with a 17.4% op. margin. Commercial PC revenue fell 15% Y/Y, and consumer PCs 12%. Desktop units fell 17%, and notebooks 5%. Printing units -17%, with commercial down 23% and consumer 14%. Supplies (high-margin) -10%.
- Enterprise hardware: Hewlett-Packard Enterprise's (HPE) Enterprise Group (hardware and related services) saw revenue rise 2% Y/Y to $7.4B, with a 14% op. margin. x86 servers +5%, business critical systems (UNIX/Itanium) -8%, storage -7% networking (boosted by the Aruba Networks acquisition) +35%, tech services -11%.
- Enterprise services: Revenue (under pressure for a while, pressured by cloud adoption and share loss) fell 9% to $5B, with an 8.2% op. margin. App/business services -5%, IT outsourcing -11%.
- Software: Revenue -7% to $958M, with a 30.1% op. margin. License revenue -6%, support -9%, proffesional services -3%, SaaS -2%.
- Financial Services: Revenue -11% to $802M, with a 10.8% op. margin. Portfolio assets +2%, financing volume +4%.
- Financials: Ahead of the split, HP spent $301M on buybacks in FQ4. Job cuts led GAAP costs/expenses to drop 6% Y/Y to $24.8B. HP Inc. has cut its FY16 free cash flow guidance by $100M to $2.4B-$2.7B; the company blames the moving of separation costs from FY15 to FY16.
- HPQ -5.2% after hours. HPE +2.8%.
- Results and guidance. Earnings releases: I, II.