--> HPQ Trading near closing level, traded higher and now lower
Reports Q3 (Jul) earnings of $0.89 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.89; revenues rose 1.0% year/year to $27.59 bln vs the $27.06 bln consensus.
Co issues in-line guidance for Q4, sees EPS of $1.03-1.07, excluding non-recurring items, vs. $1.05 Capital IQ Consensus -- narrows FY14 EPS to $3.70-3.74 from $3.63-3.75 vs. $27.6 bln.
Segment results:
Personal Systems revenue was up 12% YoY with a 4.0% operating margin. Commercial revenue increased 14% and Consumer revenue increased 8%. Total units were up 13% with Desktops units up 9% and Notebooks units up 18%.
Printing revenue was down 4% YoY with an 18.4% operating margin. Total hardware units were down 5% with Commercial hardware units down 2% and Consumer hardware units down 6%. Supplies revenue was down 5%.
Enterprise Group revenue was up 2% YoY with a 14.0% operating margin. Industry Standard Servers revenue was up 9%, Storage revenue was down 4%, Business Critical Systems revenue was down 18%, Networking revenue was up 4% and Technology Services revenue was down 3%.
Enterprise Services revenue was down 6% YoY with a 4.1% operating margin. Application and Business Services revenue was down 4% and Infrastructure Technology Outsourcing revenue declined 8%.
Software revenue was down 5% YoY with a 21.2% operating margin. License revenue was down 16%, support revenue was flat, professional services revenue was down 3% and software-as-a-service (SaaS) revenue was up 8%.
HP Financial Services revenue was down 3% YoY with a 1% increase in net portfolio assets and a 14% increase in financing volume. The business delivered an operating margin of 9.2%.
HP also utilized $582 million of cash during the quarter to repurchase ~17.5 million shares of common stock in the open market. HP exited the quarter with $14.8 billion in gross cash.