HP Q1 solid; Whitman says 'I feel good about rest of the year'

Hewlett-Packard delivered better-than-expected first quarter results, raised its outlook for the second quarter and said it has "disruptive innovations" on tap in coming quarters.

The disruptive innovation comment from CEO Meg Whitman likely revolved around Project Moonshot, the company's ARM-based server designed for hyperscale environments.

HP reported first quarter earnings of $1.6 billion, or 63 cents a share, on revenue of $28.4 billion, down 6 percent from a year ago. Non-GAAP earnings in the first quarter were 82 cents a share. Wall Street was looking for first quarter earnings of 71 cents a share on revenue of $27.8 billion.

In an earnings release, Whitman noted that HP "still has a lot of work to do to generate the kind of growth we want to see," but "we expect the benefits from our restructuring will accelerate through fiscal 2013." Whitman added that "I feel good about the rest of the year" and promised "a number of new programs and disruptive innovations" in the quarters ahead.

As for the outlook, HP projected first quarter non-GAAP earnings to be 80 cents to 82 cents a share with GAAP earnings of 38 cents a share to 40 cents a share. For fiscal 2013, HP sees non-GAAP earnings of $3.40 a share to $3.60 a share with GAAP earnings of $2.30 a share to $2.50 a share. The annual outlook was in line with previous expectations and the first quarter view was ahead of Wall Street estimates.

Under the hood of HP, however, the company saw revenue declines across all of its units. Personal systems revenue in the first quarter fell 8 percent from a year ago; printing sales fell 6 percent, enterprise group revenue was off 5 percent and enterprise services fell 7 percent.

And the more detailed revenue by unit breakdown: