HP's Final Earnings Report as One HP Not Exactly Encouraging
Despite plenty of black ink overall, pressure from competitors continues to build on both HP spinoffs, HP Enterprise and HP Inc.Hewlett-Packard Co., founded at the dawn of World War II and serving as a publicly held company from January 1978 until Oct. 31, 2015, rode a quiet trail into the sunset Nov. 24. Its two surviving descendants, HP Enterprise and HP Inc., born Nov. 1, will carry on the Bill Hewitt-David Packard business in smaller forms and in different markets from now on. It wasn't one of the venerable company's better earnings report days. The all-purpose IT hardware and software maker, survivor of so many product wars with companies such as IBM, Oracle, Dell, EMC and many others, publicly announced its final quarterly earnings report as a single corporation, and it had to show another drop in revenue for most of its businesses. HP is a profitable company, don't misunderstand. Any company that reports $1.32 billion in profit on sales of $25.71 billion over a span of three months -- which it did Nov. 24 -- is doing most things correctly. Net income was essentially flat from a year earlier, thanks to cost cutting across the board and numerous layoffs. The main worry -- overall revenue -- dropped an alarming 9.5 percent. The combined company has reported revenue declines in 16 of the past 17 quarters. Shares in HP Enterprise rose about 3 percent in after-hours trading after closing at $13.69.
Pressure from competitors continues to build on both HP spinoffs. Revenue for both in the fiscal fourth quarter was down year-over-year, and profits were at the low end of analysts' estimates.