HP Revenue Flat for Second Quarter; More Layoffs

Hewlett-Packard today announced financial results for its fiscal 2014 second quarter ended April 30th with earnings per share (EPS) of $0.66, up from $0.55 in second-quarter 2014, and within its previously provided outlook of $0.62 to $0.66. However, HP also announced that it will eliminate some 11,000 to 16,000 positions than it had previously planned.

Second-quarter net revenue of $27.3 billion was down 1 percent compared to second-quarter 2013.

In May 2012, HP adopted a multi-year restructuring plan designed to deliver better results. HP previously estimated that 34,000 positions would be eliminated in connection with the plan. However, the firm now says the previously estimated number of eliminated positions will increase by between 11,000 to 16,000.

HP CEO Meg Whitman

HP CEO Meg Whitman commented, “With the first half of our fiscal year completed, I’m pleased to report that HP’s turnaround remains on track. With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We’re gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape.”

Outlook

For its  fiscal 2014 third quarter, HP estimates EPS to be in the range of $0.59 to $0.63.

For entire fiscal 2014 year, HP estimates EPS to be in the range of $2.68 to $2.80.

HP fiscal 2014 second quarter financial performance

Q2 FY14Q2 FY13Y/Y
GAAP net revenue ($B)$27.3$27.6(1%)
GAAP operating margin6.7%5.80.9 pts.
GAAP net earnings ($B)$1.3$1.118%
GAAP diluted net earnings per share$0.66$0.5520%
Non-GAAP operating margin8.6%8.6%0.0 pts.
Non-GAAP net earnings ($B)$1.7$1.70%
Non-GAAP diluted net earnings per share$0.88$0.871%
Cash flow from operations ($B)$3.0$3.6(16%)
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