Hewlett-Packard (HPQ) this afternoon reported fiscal Q1 revenue below expectations but beat on the bottom line. The company offered a Q2 EPS forecast below the consensus estimate.
Revenue in the three months ended in January fell 7%, year over year, to $30 billion, yielding EPS of 92 cents.
Analysts had been modeling $30.75 billion and 87 cents per share.
HP shares are down 41 cents, or 1.4%, at $28.51.
Chief executive Meg Whitman remarked that “In the first quarter, we delivered on our Q1 outlook and remained focused on the fundamentals to drive long-term sustainable returns.”
“We are taking the necessary steps to improve execution, increase effectiveness and capitalize on emerging opportunities to reassert HP’s technology leadership.”
For the current quarter, the company sees earnings per share in a range of 88 cents to 91 cents a share, below the average 95-cent estimate. HP reiterated a forecast for EPS this year of at least $4 per share.
HP’s revenue from its PC division, Personal Systems Group, declined 15%, year over year, with consumer client computer revenue down 25%. The Services group revenue rose 1%, year over year. Imaging and Printing revenue was down 7%, with commercial hardware sales falling 5% on a 10% decline in printer hardware units, and consumer hardware revenue falling 15% on a 15% drop in units.
Enterprise division revenue fell 10%, with networking sales flat, server revenue down 11%, and storage revenue off 6%.
HP said it bought back $780 million worth of stock, or 29 million shares, in the quarter.
HP’s software revenue rose 30%, year over year.
HP will host a conference call with analysts at 5 pm, Eastern time, and you can catch the webcast of it here.
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