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More on H-P's FQ3: PC revenue -10% Y/Y (not quite as bad as Dell) vs. flat growth in FQ2....

More on H-P's FQ3: PC revenue -10% Y/Y (not quite as bad as Dell) vs. flat growth in FQ2. Desktops -6%, notebooks -12%, both consumer and business sales fell. Printing -3%, better than FQ2's 10% drop, op. margin improved 260 bps. Services -3% (-1% prior), enterprise hardware -4% (-6% prior) with rising networking sales offset by server/storage drops (share loss). Software +18% (+22% prior), boosted by Autonomy, but license growth only 2%. $365M in shares repurchased. HPQ +2.5% AH. CC at 5PM ET (webcast). (PR)
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Comments (4)
  • maynevp
    , contributor
    Comments (5) | Send Message
     
    I am surprised by the software sales growth of only 2%. If HP's Cloud Computing offering was gaining traction, the increase should be more robust.

     

    The Enterprise Hardware declines are a symptom of increasing commoditization of servers and storage.

     

    What is even more troubling is the abrupt curtailment over the past year in HP announcements on new products and service offerings.
    22 Aug 2012, 04:51 PM Reply Like
  • Value_Analyst
    , contributor
    Comments (23) | Send Message
     
    On the conference call they just hinted at a possible impairment of goodwill in the software segment during the upcoming quarter. I wouldn't be surprised to see a $6+ billion (non-cash) impairment charge coming in the next couple of months.
    22 Aug 2012, 06:27 PM Reply Like
  • QuantRec
    , contributor
    Comments (438) | Send Message
     
    HP Losing To Dell - That is Pitiful. http://goo.gl/sreSb
    22 Aug 2012, 05:57 PM Reply Like
  • Marketmaster098
    , contributor
    Comments (22) | Send Message
     
    Autonomy DOWN 4%; Printing DOWN 3%; Services DOWN 3%; Desktops DOWN 6%; Notebooks DOWN 12%; Enterprise Hardware DOWN 4%; Consumer DOWN; Enterprise DOWN; Server/Storage DOWN

     

    Is HP at the bottom..Does not look like it. Is Meg getting different behavior from those left over from the last 5 years? Nope. $365 Million spent on stock buy back and 4000 fewer paychecks..Did not help much. $8 Billion written off...Did it help? Only to make the numbers "less worse" than they would be. Do we expect anything different next quarter? Nope. Q3 is usually HP's worst.
    22 Aug 2012, 06:37 PM Reply Like
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