HPQHewlett-Packard beats by $0.01, misses on revs; guides Q1 EPS within range (midpoint below consensus); reaffirms FY15 EPS guidance (37.63 +0.13)
Reports Q4 (Oct) adj. earnings of $1.06 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.05; revenues fell 2.5% year/year to $28.41 bln vs the $28.76 bln consensus.
* Personal Systems revenue was up 4% year over year with a 4.0% operating margin. Commercial revenue increased 7% and Consumer revenue decreased 2%. Total units were up 5% with Desktops units down 2% and Notebooks units up 8%. * Printing revenue was down 5% year over year with an 18.1% operating margin. Total hardware units were down 1% with Commercial hardware units up 5% and Consumer hardware units down 4%. Supplies revenue was down 7%. * Enterprise Group revenue was down 4% year over year with a 14.8%. * Enterprise Services revenue was down 7% year over year with a 6.8% operating margin operating margin. Co issues guidance for Q1, sees EPS of $0.89-0.93, excluding non-recurring items, vs. $0.93 Capital IQ Consensus.
Co reaffirms guidance for FY15, sees EPS of $4.83-5.03, excluding non-recurring items, vs. $3.96 Capital IQ Consensus Estimate.
HP generated $2.7 billion in cash flow from operations in the fourth quarter, down 4% from the prior-year period. HP also utilized $750 million of cash during the quarter to repurchase approximately 21.7 million shares of common stock in the open market. HP exited the quarter with $15.5 billion in gross cash.