Another misleading earning report of Financial Engineering of Profits carbon copied by CNBC
HWP reports exactly the same operating profits on higher sales.
Implication - SHRINKING MARGINS
But the headline of earnings is misleading - growth in earnings.
Judge for yourself
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF EARNINGS
(Unaudited)
(In millions except per share amounts)
Three months ended Percent
April 30 increase/
2000 1999 (decrease)
------ ------ --------
Net revenue:
Products $10,231 $ 8,999
Services 1,797 1,456
------- -------
Total 12,028 10,455 15
Costs and expenses:
Cost of products sold and services 8,595 7,299
Research and development 671 633
Selling, general and administrative 1,872 1,628
------- -------
Total 11,138 9,560 17
Earnings from operations 890 895 (1)
Interest income and other, net 210 194
Interest expense 40 45
------- -------
Earnings from continuing operations
before taxes 1,060 1,044 2
Provision for taxes 244 278
------- -------
Net earnings from continuing operations 816 766 7
------ ------
Net earnings from discontinued operations 119 152 (22)
---- -------
Net earnings $ 935 $ 918 2
======= =======
Net earnings per share: Continuing
operations(A)
Basic $ 0.82 $ 0.76
Diluted 0.79 0.73
Net earnings per share: Discontinued
operations(A)
Basic $ 0.12 $ 0.15
Diluted 0.11 0.15
Net earnings per share: Total(A)
Basic $ 0.94 $ 0.91
Diluted 0.90 0.88
Cash dividends per share $ 0.16 $ 0.16
======= =======
Average number of shares and equivalents
Basic 994 1,010
Diluted 1,042 1,051 |
