Hewlett-Packard just reported a miss on revenue and profit for its last final earnings as a single, whole company
HP split into two companies on November 1.
But because it was a whole company through October 31, the end of its fiscal year, it filed a results on the consolidated company, and some guidance info on each of the individual companies.
Here's the gist:
- A miss on revenue for the quarter: The consolidated company reported 4Q net revenue of $25.7 billion, down 9% from the prior-year period and down 3% on a constant currency basis. Analysts expected 4Q revenue of $26.56 billion.
- A miss on EPS: It reported earnings per share of $0.93. Analysts expected $0.96. HP had provided a previous outlook of $0.92 to $0.98 per share.
For fiscal 2015, HP reported net revenue of $103.4 billion, down 7% from the prior-year period and down 2% on a constant currency basis.
For the quarter, year over year:
- PC revenue was down 14%
- Printing revenue was down 14%
- Enterprise Group (ETOLF) revenue was up 2% (the shining star here was networking revenue, which was up 35%)
- Enterprise Services revenue was down 9%, but the good news is operating margin was 8.2%. (HP has been laying off tens of thousands from this unit to make it more profitable. Looks like it's working).
- Software revenue was down 7%
- HP Financial Services revenue was down 11%
Guidance:
For the new stand-alone HP Inc., (the PC/printer business which trades under the old ticker symbol HPQ), management expects FQ1 EPS of $0.33-$0.38 and FY16 EPS of $1.59-$1.69.
That's below consensus estimates of $0.42 and $1.77. It's also lower than its last guidance. Just before the split, on Sept. 15, the company forecasted 2016 EPS of $1.67-$1.77.
For the new standalone Hewlett Packard Enterprise (trading under the new symbol HPE), management expects FQ1 EPS of $0.37-$0.41 and reiterated FY16 EPS of $1.85-$1.95, versus consensus estimates of $0.43 and $1.88.