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

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

Summary: CEO Meg 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."

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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.

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And the more detailed revenue by unit breakdown:

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Topics: Tech Industry, Cloud, Data Centers, Hardware, Hewlett-Packard, Laptops, Servers, PCs

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11 comments
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  • She feels good about rest of the year

    In other words, she's confident she won't be fired
    William Farrel
    • with HP board's stupidity

      there is no way to be confident
      polarcat
    • And why would she?

      After all she is obviously communicating clearly to the makets, and driving HP forward. I'm impressed with what she is doing, and with her style (and believe me, I was prepared not to). If the ARM server is real, that could be very interesting. When was hte last time HP was driving technology?

      Anyway I'd far prefer to work for her than "Smoking" Steve... "Smoking" as in what is he smoking???
      paddle.
    • Well Wilie

      You can always tell her about the time you got fired.

      lol...
      CaviarGreen
  • non-GAAP

    Would that mean "not generally accepted accounting practices"?
    John L. Ries
    • Well, yes

      For instance, it might be marking deferred income as current income. (To be clear, money collected now but held as an asset until a point in time when the sale technically posts.)
      DannyO_0x98
      • Standards are good

        GAAP may not be perfect, but at least it's generally understood (at least among accountants) what it means, so investors have a better idea of what they're getting.

        We'll probably see creative accounting used as a PR tool again, but hopefully , we have a long wait.
        John L. Ries
  • Why would you care that she said this?

    From the woman who sings every morning:
    I feel pretty! Oh so pretty! I feel pretty and witty and gay!
    And I pity Any girl who isn't me today!

    Wilburrrrr, that's a funny name for a man!
    Meg, that a funny name for a horse!
    Kyle Lyles
    • Wow

      Got a few voices in your head today bucko?
      paddle.
  • Whitman is...

    a brain dead bucket of puke. How does she keep landing these cushy gigs???
    jackbond
    • She's just smarter than you

      'o brainless one...
      CaviarGreen