Feeds

HP's Q3 profit rises, shares follow

Slow and steady wins the race

Next gen security for virtualised datacentres

Shares of HP soared to a new 52-week high during the after-hours trading that followed the company's release of third quarter financial results. As has become the case under new CEO Mark Hurd, HP beat out profit expectations and turned in solid revenue gains.

HP continues to put the sex appeal back in cutting-costs - at least if you're an investor in the company. It reported a ho-hum five per cent rise in revenue to $21.9bn and an astonishing profit surge from $100m in the same period last year to $1.4bn. That left HP with an earnings per share figure of 48 cents - up from 3 cents last year - and embiggened investors.

Shares of HP jumped more than 6 per cent during after-hours trading to $36.50, at the time of this report. That figure beats out HP's previous 52-week high of $34.52. Shares of HP had languished below the $20 mark before Hurd took over.

Previous CEO Carly Fiorina would often celebrate good quarters with parade preparations and vague talk about how well her team had done. New chief Hurd uses a more modest form of cheerleading hokum.

During conference calls with press and analysts, Hurd talked about "not rolling the perfect game" and said HP has plenty of work ahead of it. The company has "lever pulling" to do and things to "grow and attach" to.

Most analysts cheered HP's quarter, although a couple questioned the revenue figure. The five per cent rise marks HP's lowest growth total since Hurd took over, and the company has not promised more robust growth in the future.

A lot of HP's financial gains under Hurd have come as a a result of cost-cutting measures such as trimming real estate and data center costs. HP also fired more than 10,000 staff on Hurd's watch.

One wonders how impressive HP's results will look once many of the one-time savings measures pass.

In the near-term, however, it's hard to knock HP's performance.

The company's flagship printing unit reported 5 per cent revenue growth to $6.2bn and a profit of $884m. HP's PC sales rose 8 per cent to $6.9bn, and the PC unit produced a $275m profit.

The company's big-iron did well too with sales increasing 3 per cent year-over-year to $4.1bn. Storage and x86 server sales were strong, while HP's RISC sales dropped off. Itanium server sales increased 76 per cent. This unit posted a $296m profit.

The only mediocre performance was turned in by HP's services team. Sales rose 1 per cent to $3.9bn and the unit provided a profit of $364m.

The software biz revenue rose 30 per cent to $318m and handed in a profit of $13m. Software revenue will be much higher once HP's closes its purchase of Mercury Interactive.

These results look very consistent when compared to recent figures turned in from IBM and Dell.

HP is looking for fourth quarter revenue of $24.1bn and earnings per share between 57 cents and 59 cents. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.