Hewlett-Packard beats by $0.01, reports revs in-line; guides Q3 EPS just below consensus; reaffirms FY15 EPS guidance; gives spin off guidance
* Reports Q2 (Apr) earnings of $0.87 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.86; revenues fell 6.8% year/year to $25.45 bln vs the $25.67 bln consensus.
Personal Systems revenue was down 5% YoY with a 3.0% operating margin. Commercial revenue decreased 7% and Consumer revenue decreased 2%. Total units were up 2% with Notebooks units up 19% and Desktops units down 14%.
Printing revenue was down 7% YoY with an 18.3% operating margin. Total hardware units were down 4% with Commercial hardware units up 1% and Consumer hardware units down 6%. Supplies revenue was down 5%.
Enterprise Group revenue was down 1% YoY with a 14.5% operating margin. Industry Standard Servers revenue was up 11%, Storage revenue was down 8%, Business Critical Systems revenue was down 15%, Networking revenue was down 16% and Technology Services revenue was down 8%. Additionally, HP closed its acquisition of Aruba in May.
Co issues downside guidance for Q3, sees EPS of 0.83-0.87, excluding non-recurring items, vs. $0.87 Capital IQ Consensus.
Co reaffirms guidance for FY15, sees EPS of $3.53-3.73, excluding non-recurring items, vs. $3.64 Capital IQ Consensus.
The separation remains on track and the co expects associated dis-synergies of ~$400 to $450 million. The company also announced new future leadership appointments for both cos:
Cathie Lesjak will become Chief Financial Officer of HP Inc.
Lesjak's move to HP Inc., Tim Stonesifer will become CFO of Hewlett Packard Enterprise. Stonesifer currently serves as CFO of HP's Enterprise Group.
Chris Hsu has been selected to become Chief Operating Officer at Hewlett Packard Enterprise.