Revenue Down, but Earnings up for HP’s Fiscal Year


HP today announced financial results for its fourth quarter and fiscal year ended October 31, 2013. Fourth quarter earnings per share (EPS) was $0.73, up from a net loss per share of $3.49 in the prior-year period. Fourth-quarter net revenue of $29.1 billion was down 3 percent from the prior-year period and down 1 percent when adjusted for the effects of currency.

Fiscal 2013 EPS was $2.62, up from a net loss per share of $6.41 in the prior-year period and below the previously provided outlook of $2.67 to $2.71 per share.

Fiscal 2013 net revenue of $112.3 billion was down 7 percent from the prior year and down 5 percent when adjusted for the effects of currency.

“Through improved execution, strong cost management, and with the support of our customers and partners, HP ended fiscal 2013 on a high note,” commented HP President and CEO Meg Whitman. “Our Q4 results demonstrate that HP’s turnaround remains on track heading into fiscal 2014. While we still have much more work to do, our business units and their core assets are delivering on HP’s strategy to help customers thrive by providing solutions for the New Style of IT.”


For the first quarter of fiscal 2014, HP estimates net EPS to be in the range of $0.60 to $0.64.

For fiscal 2014, HP estimates EPS to be in the range of $2.85 to $3.05, in line with its previous outlook.

Fourth Quarter Fiscal 2013 Segment Results

  • Personal Systems (PC) revenue was down 2 percent year-over-year with a 3.0 percent operating margin. Commercial revenue increased 4 percent and Consumer revenue declined 10 percent. Total units were up 2 percent with Desktops PC units down 5 percent and Notebooks units up 3 percent.
  • Printing revenue was down 1 percent year-over-year with a 17.7 percent operating margin. Total hardware units were up 6 percent with Commercial hardware units up 9 percent and Consumer hardware units up 4 percent. Supplies revenue was down 4 percent.
  • Enterprise Group revenue was up 2 percent year over year with a 14.5 percent operating margin. Networking revenue was up 3 percent, Industry Standard Servers revenue was up 10 percent, Business Critical Systems revenue was down 17 percent, Storage revenue was up 1 percent and Technology Services revenue was down 6 percent.
  • Enterprise Services revenue declined 9 percent year-over-year with a 4.4 percent operating margin. Application and Business Services revenue was down 10 percent, and Infrastructure Technology Outsourcing revenue declined 9 percent.
  • Software revenue was down 9 percent year-over-year with a 30.8 percent operating margin. Support revenue was up 4 percent, license revenue was down 24 percent, professional services revenue was down 13 percent and software-as-a-service (“SaaS”) revenue was up 15 percent.
  • HP Financial Services revenue was down 6 percent year over year with a 5 percent decrease in net portfolio assets and a 3 percent decrease in financing volume. The business delivered an operating margin of 11.2 percent.

More information on HP’s earnings, including additional financial analysis and an earnings overview presentation, is available on HP’s Investor Relations Web site a

HP’s fourth-quarter fiscal 2013 earnings conference call is accessible via an audio webcast at


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