HP third-quarter earnings beat forecasts
(UPDATE: Adds details)
PALO ALTO, Calif., Aug 16 (Reuters) - Computing giant Hewlett-Packard Co. (NYSE:HWP - news) on Wednesday reported third-quarter earnings that were higher than most analysts' forecasts, and announced plans for a two-for-one stock split.
The company said it earned $1.03 billion or 99 cents per diluted share from continuing operations, compared with $696 million or 66 cents per share in the year-ago period.
Most analysts had been forecasting earnings of 85 cents per share, according to First Call/Thompson Financial, which tracks forecasts.
Revenues totalled $10.73 billion, up from $9.53 billion last year.
In a statement issued after the numbers were reported, Hewlett-Packard Chief Executive Carly Fiorina said the strong growth validated the more aggressive and focused strategy undertaken a year ago.
``HP's accelerating momentum is evident in our financial results, in our wins with customers, and in the energy and confidence of the HP team,'' Fiorina said in a statement. ``Our strategy to create new markets that capitalise on the wealth of opportunities flowing out of the Internet-enabled world is on target, and our execution is crisp.''
Highlighting some of its key businesses, Hewlett-Packard said revenues from its home PC business grew 62 percent, despite a relatively flat U.S. retail market. Notebook computer revenues grew 93 percent.
The company said consumer business revenues grew 34 percent, Unix server revenues were up 13 percent, enterprise storage revenues were up 10 percent and software revenues were up 57 percent.
It said its e-services Internet strategy was ``gaining traction.''
``Based on our confidence in this continued strong performance, we're splitting our shares,'' Fiorina said. The split will take effect October 27 to shareholders of record September 27.
Hewlett-Packard's operating income excludes gains from discontinued operations. Including all the unusual items, it had a net profit of $1.05 billion or $1.01 per diluted share, compared with $853 million or 81 cents per diluted share last year. |
