AAPL Stock: 118.03 ( -0.85 )

Printed from

HP posts quarterly earnings beating estimates, Wall Street unimpressed

updated 05:55 pm EDT, Wed May 22, 2013

No major stock movement in after-hours trading expected

HP today announced financial results for its second fiscal quarter ended April 30, 2013. Second quarter diluted earnings per share was $0.55, down from $0.80 in the prior-year period and above its previously provided outlook of $0.38 to $0.40 per share. For the second quarter, net revenue of $27.6 billion was down 10% year over year.

The company generated $3.6 billion in cash flow from operations in the second quarter, up 44% from the prior-year period. HP's dividend payment of $0.132 per share in the second quarter resulted in cash usage of $283 million. HP also utilized $797 million of cash during the quarter to repurchase approximately 36.3 million shares of common stock in the open market. HP exited the quarter with $13.6 billion in gross cash.

"After returning more than a billion dollars to shareholders through share repurchases and dividends in the quarter, we improved our operating company net debt position for the fifth successive quarter," said HP CEO Meg Whitman. "By the end of fiscal 2013, we expect our operating company net debt to be below pre-Autonomy levels and approaching our goal of approximately zero."

Individual notable segments of the company included Personal Systems revenue was down 20% year over year with a 3.2% operating margin, and Enterprise Group revenue declined 10% year over year with a 15.9% operating margin. Software revenue was down 3% year over year with a 19.1% operating margin, with Printing revenue dropping 1% year over year with a strong operating margin of 15.8%. Total print hardware units fell 11% year over year.

For the third quarter of fiscal 2013, HP estimates diluted EPS to be in the range of $0.84 to $0.87 primarily due to amortization of purchased intangible assets, restructuring charges and acquisition-related charges.

by MacNN Staff




Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented