Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • PC Hardware

    HP’s Revenue, Profit Slip but Still Beat Street Projections

    By
    Chris Preimesberger
    -
    May 22, 2015
    Share
    Facebook
    Twitter
    Linkedin

      Hewlett-Packard Co. certainly did not have a red-letter day on May 21, when it presented its Q2 2015 earnings report. Nonetheless, its stock price improved 3.3 percent to $34.21 — largely because it still beat Wall Street analysts’ projections.

      The Palo Alto, Calif.-based IT icon had to admit that its quarterly profits were down 21 percent year-over-year, that overall revenue sank 7 percent, and that it had to spend $745 million in the quarter to divide the company up into HP Enterprise and HP Inc.

      Separation costs will continue for months to come, HP said, as the huge, 302,000-employee company breaks up into two independent entities.

      It also had to fess up to laying off 3,900 workers in the quarter, which brings to 48,000 the number of HP full-time employees laid off since 2012, when it announced it would shed 55,000 staff members.

      Yet the company reported a better-than-expected quarterly profit and spent less on the separation than analysts had expected, so there was most of the good news.

      “I’m pleased with where we ended the quarter, the continued success of our turnaround, and the progress we’re making on separation,” Chairman and CEO Meg Whitman said on a conference call to analysts. “Despite some tough challenges, we executed well across many parts of our portfolio, sustained our commitment to innovation, and delivered the results we said we would. HP is becoming stronger as we head into the second half of our fiscal year and separation in November.”

      The world’s No. 1 printer maker, No. 2 PC seller and No. 4 external disk storage system maker said it expects to spend another $400 million to $450 million in the planned separation of its personal computer and printer businesses from its faster-growing corporate hardware (mostly servers, storage and networking) and service operations.

      HP’s profit fell to $1.01 billion from $1.27 billion, down 21 percent from Q2 2014, on revenue of $25.45 billion in the quarter, down 7 percent year-over-year.

      Ongoing cost reductions, HP’s focus on higher-margin sales and strong sales of servers and printers are the key profit drivers. Total costs and expenses fell 5.7 percent to $24 billion in the second quarter ended April 30.

      Sales across most of HP’s product lines dropped. Its enterprise services unit, which accounts for about a fifth of total revenue, was hit the hardest with a 16 percent skid.

      Whitman said HP CFO Cathie Lesjak will become the Chief Financial Officer of HP Inc., based in Houston, while Tim Stonesifer, currently CFO of HP’s Enterprise Group, will become the CFO of Hewlett Packard Enterprise in Palo Alto.

      Chris Preimesberger
      https://www.eweek.com/author/cpreimesberger/
      Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×