The 10-second takeaway
For the quarter ended Oct. 31 (Q4), Hewlett-Packard missed slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.
Gross margins increased, operating margins grew, net margins shrank.
Hewlett-Packard logged revenue of $29.96 billion. The 27 analysts polled by S&P Capital IQ predicted a top line of $30.44 billion on the same basis. GAAP reported sales were 6.7% lower than the prior-year quarter's $32.12 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.16. The 30 earnings estimates compiled by S&P Capital IQ predicted $1.14 per share. GAAP EPS were -$3.49 for Q4 against $0.12 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.2%, 190 basis points better than the prior-year quarter. Operating margin was 9.1%, 160 basis points better than the prior-year quarter. Net margin was -22.9%, 2,360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $27.78 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $112.03 billion. The average EPS estimate is $3.35.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,431 members out of 3,820 rating the stock outperform, and 389 members rating it underperform. Among 764 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 673 give Hewlett-Packard a green thumbs-up, and 91 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 $18.63.
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