Hewlett-Packard Co. posted sales and profit for the first quarter of the fiscal year that beat analysts estimates after the company won new orders for corporate machines and servers to run data centres.
Hewlett-Packard Co. made an official statement, revealing that its profit, excluding certain costs in the period that ended on January the 31st, was 90 cents a share, and its revenue was estimated to 28.2 billion dollars. According to data compiled by Bloomberg, analysts had projected a profit of 84 cents per share and a 27.2-billion-dollar revenue.
Hewlett-Packard Co. announced that its net income for the first quarter of the fiscal year increased by 16% and reached 1.43 billion dollars, which makes 74 cents per share. In comparison, the companys net income for the same period of the fiscal 2013 was 1.23 billion dollars, which translates into 63 cents a share. The companys revenue decreased by less than 1% from the one of the year-ago period, which was reported to be 28.4 billion dollars.
One of the analysts working for RBC Capital Markets – Amit Daryanani said for Bloomberg: “That could result in a dynamic where HP could pick up more share. In servers I think they’ve done slightly better but nothing phenomenal.”
The company is headed for its third consecutive annual sales drop due to a declining personal computers market. Chief Executive Officer Meg Whitman is currently putting her efforts in adjusting the company to the situation, which will benefit from the fact that International Business Machines Corp. left part of the market by selling one of its units to Lenovo Group Ltd.
Chief Executive Officer Meg Whitman said in a telephone interview, which was cited by Bloomberg: “The restructuring program is very much on track and customers and partners have a lot more confidence in HP than they did two and a half years ago.”
One of the analysts working for Edward Jones & Co. – Mr. Bill Kreher – commented the companys results for Bloomberg: “These results justify the recent run-up. While earnings are starting to turn, investors are looking for top-line improvements.” He also explained that despite the increasing sales, most investors are looking for some further evidence that Hewlett-Packard Co. is able to deliver continuous revenue growth before buying more of the companys stock.
Hewlett-Packard Co.s shares surged by 2.51% in New York on Thursday to close the session at $30.19, marking a one-year change of +80.78%. According to CNN Money, the 24 analysts offering 12-month price forecasts for Hewlett-Packard Co have a median target of $29.25, with a high estimate of $40.00 and a low estimate of $17.00. The median estimate represents a -3.11% decrease from the last close.
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