HP's 88 cent per share earnings beats expectations
- 19 May, 1999 09:17
Hewlett-Packard reported strong second-quarter earnings of $US918 million last week as a result of solid sales of PCs, printers and imaging products and improvement in the company's measurement business.
Earnings for the second quarter, which ended on April 30, were 34 per cent higher than the $US685 million reported a year ago. Earnings per share on a diluted basis were 88 cents, well above expectations of 20 analysts polled by First Call that predicted HP would earn 80 cents per share for the quarter. Last year the company posted earnings per share of 65 cents for the second quarter.
Net revenue for the second quarter this fiscal year was $US12.4 billion, compared with $US12 billion in the second quarter last year.
Geographically, revenue was $US5.4 billion in the United States, up 2 per cent; $US4.5 billion in Europe, up 8 per cent; $US1.9 billion in the Asia-Pacific region, down 3 per cent; and $US650 million in Canada and Latin America combined, with no change from the same quarter last year.
Overall, sales were particularly strong in PC servers, mobile products and home PCs, according to a company statement. Inventory levels also were "excellent", helping to keep operations efficient, the company noted.
Services and software also grew, led by rapid expansion in the outsourcing business, momentum in consulting and continued strong demand for Windows NT support, HP said. HP OvenView enterprise management and Internet software sales also increased, according to the company.
Meanwhile, colour printers and scanners and inkjet printer sales were strong while the company's measurement business grew 14 per cent over last year.
HP stock closed on the Nasdaq exchange at $US88.75, up 4.5 points for a 5.4 per cent increase.