Feeds

HP's Q3 profit rises, shares follow

Slow and steady wins the race

Choosing a cloud hosting partner with confidence

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. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.