PC Sales Boost HP Revenue Up for First Time Since 2011
NEWS ANALYSIS: The revenue increase is largely due to improving sales of new-generation laptop PCs, on which HP has focused a lot of investment.Nearly three years into Meg Whitman's reign as CEO of one of technology's sturdiest and most venerable companies, Hewlett-Packard Co. is still in turnaround mode. When it will return to full-sail growth and profitability remains an open question. There was bad news and good news in HP's fiscal third-quarter earnings report Aug. 20. The bad: the IT giant posted earnings that were down 29 percent from a year ago, due largely to internal factors, including the costs of thousands of employee layoffs and payments on several expensive past acquisitions. On the other hand, a streak of 11 straight quarters of declining revenue was snapped with a small but important 1 percent increase. This is largely due to improving sales of new-generation laptop PCs, on which HP has focused a lot of investment in the last few years in competing with Apple and other manufacturers. Overall in the quarter that ended July 31, HP profited $985 million (52 cents per share). That compared to $1.4 billion, or 71 cents per share, in 2013's third quarter--thus the 29 percent falloff.
Revenue amounted to $27.6 billion, up from 1 percent at the same time last year, beating the Wall Street analysts' average projection of $27 billion. The slight increase was HP's first year-over-year gain in quarterly revenue in nearly three years, or right before Whitman took over for Leo Apotheker as CEO in September 2011.