HP fourth-quarter revenue drops on weak enterprise demand

Tue Nov 25, 2014 6:28pm EST
 
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By Sarah McBride

(Reuters) - Hewlett-Packard Co said its quarterly revenue fell in almost every business segment over the year, highlighting weaknesses ahead of the company's planned 2015 separation of its enterprise services from its traditional computer and printing units.

Sales fell 2.5 percent in the fourth quarter to $28.41 billion, from $29.13 billion a year earlier, HP said on Tuesday. Analysts had expected $28.76 billion.

Profit declined 2.7 percent to $2.01 billion, or $1.06 cents a share, compared with $1.01 cents a share a year ago, in line with analysts' expectations.

On a more traditional accounting basis, profit declined 5.7 percent to $1.33 billion, or 70 cents a share, compared with 73 cents a share a year ago.

"I've always said that turnarounds aren't linear," Chief Executive Meg Whitman told analysts on a conference call while highlighting HP's performance compared with three years ago, when she became CEO. "We're right where we thought we'd be."

The enterprise group and enterprise services, areas that Whitman had previously flagged as growth drivers, showed revenue declines of 4 percent and 7 percent respectively.

On the call, Whitman said she expected a slower decline in enterprise revenue next year. Enterprise services would be the biggest "swing factor" in the company's 2015 growth projections, she said.

For next year, the company said it expects to earn $3.83 to $4.03 per share, up from $3.74 for 2014.   Continued...

 
A Hewlett-Packard logo is seen at the company's Executive Briefing Center in Palo Alto, California January 16, 2013. REUTERS/Stephen Lam