Hewlett-Packard turns 3Q profit but revenue falls
Hewlett-Packard made a profit in the latest quarter, reversing a huge loss a year ago that stemmed from an $8 billion charge. But the technology bellwether's revenue declined amid an ongoing weakness in the PC market.
Hewlett-Packard Co. said Wednesday that it earned $1.39 billion, or 29 cents per share, in the fiscal third quarter that ended July 31. That's up from a loss of $8.86 billion, or $4.49 per share, a year ago when the results included a charge to reflect the shrinking value of Electronic Data Systems, a technology consulting service HP bought for $13 billion in 2008.
Revenue fell 8 percent to $27.2 billion from $29.7 billion.
Excluding one-time items, HP earned 86 cents per share in the latest quarter.
Analysts expected earnings of 87 cents per share on revenue of $27.3 billion, according to FactSet.
For the full year, HP said it expects adjusted earnings of $3.53 to $3.57 per share, roughly in line with the $3.56 per share analysts are expecting.
Shares of Palo Alto, California-based Hewlett-Packard slipped 27 cents to $25.11 in after-hours trading. The stock had closed down 46 cents at $25.38
HP also reassigned its chief operating officer, Bill Veghte. He will now be executive vice president and general manager of the HP Enterprise Group. The company didn't name a replacement. Dave Donatelli, the group's previous head, will "take on a new role focused on identifying early-stage technologies," HP said.
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