The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Hewlett-Packard missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Hewlett-Packard reported revenue of $30.04 billion. The 25 analysts polled by S&P Capital IQ predicted a top line of $30.66 billion on the same basis. GAAP reported sales were 7.0% lower than the prior-year quarter's $32.30 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.92. The earnings estimates compiled by S&P Capital IQ forecast $0.87 per share on the same basis. GAAP EPS of $0.73 for Q1 were 38% lower than the prior-year quarter's $1.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.4%, 220 basis points worse than the prior-year quarter. Operating margin was 7.0%, 420 basis points worse than the prior-year quarter. Net margin was 4.9%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $30.31 billion. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $123.75 billion. The average EPS estimate is $4.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 3,425 members out of 3,733 rating the stock outperform, and 308 members rating it underperform. Among 821 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 772 give Hewlett-Packard a green thumbs-up, and 49 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hewlett-Packard is hold, with an average price target of $31.28.
Looking to profit from the makers of computer hardware? You may be missing something obvious about where the money will be made in the tech industry of the future. Is Hewlett-Packard on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Hewlett-Packard to My Watchlist.